Which type of buyer is typically looking to downsize their living space?

The type of buyer typically looking to downsize their living space is often a retiree buyer. This demographic frequently seeks to reduce their living costs and maintenance responsibilities, which aligns with the goals of downsizing. As retirees transition from full-time work to retirement, they may find that a larger home is no longer necessary, especially if children have moved out. Downsizing allows them to find a more manageable living space that better suits their current lifestyle, whether that means moving to a smaller home, a condominium, or a retirement community.

Trade-up buyers typically look to expand their living space, often seeking larger homes due to growing families or increased financial capacity. First-time buyers are usually entering the market for the first time, often motivated to purchase a home rather than downsizing from one. Investment buyers focus on purchasing properties for rental income or capital appreciation, rather than for personal reasons like downsizing. Thus, the motivations and circumstances surrounding each type of buyer differentiate retirees as the group most associated with downsizing.