For generations, retirement in America was defined by a sense of relief. You worked hard, raised your family, built equity, and by the time you reached 65, the house was yours—free and clear. But that’s no longer the story most Colorado seniors are living. And if you’re reading this in your late fifties, sixties, or seventies, you already know that.
Today, more than 40% of Colorado homeowners aged 65 and older still carry a mortgage. That’s higher than the national average. In the Denver metro area, only 18.4% of homeowners own their homes outright—making it one of the least mortgage-free major cities in the country. What’s more, many of these mortgages are on homes purchased decades ago, back when life expectancy was lower, utility rates were cheaper, and property taxes were predictable.
Now, many seniors find themselves in a home that costs more each year to keep, even as their income stays flat or shrinks. The place that once represented freedom now feels like a burden. The question so many are quietly asking themselves is, “What should I do now?”
Let’s talk about it—honestly, clearly, and without pressure.
The Downsizing Dilemma: When Less Doesn’t Cost Less
On paper, downsizing sounds like a no-brainer. Sell the larger family home, buy something smaller, reduce your monthly expenses, and free up equity to enjoy your retirement. That logic has driven generations of older homeowners to trade square footage for simplicity, expecting financial freedom in return.
But here in Colorado—and especially in the Denver metro area—the equation is no longer that simple.
Let’s start with the math. Many homeowners nearing or in retirement are holding onto 3% or 4% fixed-rate mortgages they locked in years ago. If you’re in that group, the monthly payment on your larger home may actually be lower than what you’d pay for a smaller home at today’s interest rates, which are hovering around 6.5% or more. A modest ranch-style home in a 55+ community, even if it’s newer and smaller, might cost $500,000 or more. If you finance part of that at a higher rate, you could see your mortgage payment increase, not decrease.
But the complications don’t stop there.
The property tax on your new home may be higher—especially if you’re giving up your homestead exemption or portability benefit, which is set to expire in 2026 unless reauthorized. Insurance on a newer home may include higher premiums for HOA-managed communities or homes with higher replacement values. Even if you’re buying in cash, your monthly budget might not drop the way you’d expect. And if you’re selling a longtime home with significant appreciation, you may face capital gains tax exposure unless the sale is carefully planned.
Now layer in the emotional weight. The family home isn’t just a structure—it’s where you raised children, hosted holidays, grieved losses, and built your life. Walking away from that isn’t easy. That hesitation is valid, and it’s something every wise advisor should acknowledge and respect.
But hesitation without strategy can turn into financial stagnation. And that’s where the right Realtor makes all the difference.
Your Realtor at this stage of life should not be acting like a salesperson trying to “win your listing.” They should be acting like a consultant—someone who helps you understand the true cost of staying, the real benefit of moving, and the timing that makes the most sense for you. They should be helping you model scenarios: “What happens if I stay five more years? What if I move this year? How does that affect my tax bill, my investment income, my healthcare budget?”
And here’s where it gets even more critical: your Realtor should not be working in isolation. They should be sitting at the same metaphorical table as your financial advisor and CPA, collaborating as a team to make sure your housing plan works in harmony with your retirement plan. The Realtor brings the market expertise. The CPA brings tax strategy. The financial planner brings income forecasting. Together, they can help you move with intention and confidence—not guesswork.
I’ve had the privilege of watching this kind of collaboration change lives. One couple I advised in Lakewood was planning to sell their two-story home and buy a single-level patio home closer to their daughter. At first glance, the move made sense. But once we ran the numbers with their financial planner and CPA at the table, we realized the capital gains exposure would trigger an unexpected tax liability. Instead, we structured a plan to sell the home over two tax years and reinvest the proceeds into an income-generating rental property and a lock-and-leave condo purchased in cash. The result? Lower taxes, zero mortgage, and a monthly rental income stream that supports their travel lifestyle. But that plan only came together because all three professionals worked in sync—Realtor, CPA, and advisor.
Too often, people downsize reactively. A health scare, a big repair, or the loss of a spouse forces a rushed decision. But downsizing, when done right, is a proactive strategy. It’s a coordinated move, one that should be reviewed and revisited every year as your needs, the market, and your finances evolve.
So here’s the bottom line: if your Realtor isn’t offering this level of counsel—if they’re not helping you model outcomes, plan your exit, and coordinate with your financial team—then it may be time for a different Realtor. One who understands that you’re not just managing square footage—you’re managing your financial future, your lifestyle, and your peace of mind.
Downsizing can be a powerful financial move. But done without guidance, it can also be a trap. The difference lies in who’s advising you—and whether they’re looking out for your whole life, not just the transaction.
In this column, we’ll continue exploring these topics with transparency and clarity—because when it comes to your next move, you deserve more than a sign in the yard. You deserve a plan that honors the life you’ve built and the future you’re still designing.
A Generation That Buys Smaller, Smarter, and Greener
If you’re planning to sell your home in the next few years—or even just thinking about it—it’s time to understand something that most homeowners overlook: the next generation of buyers isn’t looking for the kind of house you wanted when you bought yours.
Millennials and Gen Z are now the dominant force in the housing market. But unlike previous generations, they’re getting a much later start. On average, they’re buying their first home in their mid-to-late 30s, after spending years renting in urban centers or living with family to pay down student debt. This delay means they’re coming into the market with more life experience, clearer expectations, and a sharper sense of what they want—and what they don’t.
And what they want is different.
They’re not chasing square footage. They’re not impressed by crown molding or formal dining rooms. What they’re buying is ease. What they’re paying for is efficiency. And what they value—perhaps above all else—is a home that aligns with their lifestyle, their values, and their monthly budget.
Today’s buyers are looking for smaller homes that are smart, sustainable, and cost-effective. They want open-concept living areas, energy-efficient appliances, modern finishes, low-maintenance yards, and the ability to control their thermostat from their phone. They want solar panels, smart doorbells, LED lighting, and high-speed internet hardwired to every room. They’re less interested in a three-car garage and more interested in an EV charger. And above all, they want move-in ready. If they walk into a home and see wallpaper borders, granite tile counters, or brass light fixtures, they don’t see charm—they see cost.
Let me give you a real example from Longmont.
Two 1990s-era ranch homes went up for sale two blocks apart. One had newer windows, a smart thermostat, updated lighting, neutral paint, and simple drought-tolerant landscaping. The other had oak cabinets, a garden tub, and green carpet in the guest room. Both were priced within $10,000 of each other. The updated home sold in 5 days for $22,000 over asking. The other sat for nearly two months, had two price reductions, and still sold $18,000 below its original list. The seller difference? One owner took the time to update based on what buyers want. The other held onto what they liked.
The Macro Pressure Behind the Micro Decisions
These preferences aren’t just about taste—they’re about survival. Millennials and Gen Z are facing a very different economic climate than their parents did when they bought their first homes. Inflation has eroded purchasing power across every budget tier. Interest rates have doubled from pandemic-era lows, making monthly payments far more expensive even when home prices stay flat. Add in burdensome student debt, an unstable job market for younger workers, and the high cost of childcare, and you begin to understand why today’s buyers are hyper-focused on total cost of ownership—not just sticker price.
When a 34-year-old couple walks into your listing, they’re not just evaluating granite countertops—they’re evaluating utility bills, HOA dues, maintenance requirements, and the potential to build equity in a volatile market. The features that feel nostalgic or “homey” to you may feel like liabilities to them. A formal dining room? That’s a home office. A big soaking tub? That’s wasted square footage. A three-car garage? Nice to have, but not if it comes with a $600 utility bill.
If you want top dollar in this market, your home needs to speak their language—not yours. That may mean replacing older windows, updating fixtures, painting over bold color schemes, or even converting unused rooms into flexible, multi-purpose spaces. Your Realtor should be guiding you through that process—helping you stage and upgrade your home not for your memories, but for the mindset of the next generation.
Because today’s buyers are coming later to the market, but they’re coming prepared. And if your home doesn’t align with the realities of their world, they’ll move on to the one that does.
If you’re preparing to sell your home, you have a choice: sell the way you want to live, or sell the way today’s buyers are looking to live. One of those paths preserves your memories. The other preserves your equity.
This is where your Realtor should be offering real, candid advice. They should be walking through your home and saying, “Here are the five updates that will give you the biggest return,” and “Here are the things that matter less than you think.” Maybe it’s replacing dated light fixtures. Maybe it’s painting over bold colors with warm neutrals. Maybe it’s upgrading appliances or refinishing floors. You don’t need a full remodel—but you do need to make strategic, targeted improvements that position your home for a different kind of buyer.
And those decisions should be made months in advance—not after the home is already listed and languishing on the market.
The buyers walking through your front door today aren’t looking for your dream home from 1996. They’re looking for their starter home for 2025. If you want to attract multiple offers and top-dollar results, your home needs to speak their language. It needs to look move-in ready, feel energy-efficient, and reflect the values of a younger, more tech-savvy, environmentally aware generation.
Don’t upgrade your home for the past. Upgrade it for your future buyer.
The True Cost of Staying Put
It’s easy to assume that if you’re not moving, you’re saving money. After all, you’ve already paid the closing costs, you know the neighborhood, and you’re not shelling out for moving trucks or commissions. But for many Colorado homeowners, especially those in their retirement years, staying put in the longtime family home can quietly become the most expensive decision they make.
Let’s begin with the obvious, but often underestimated: operating costs. A home built in the 1980s or 90s likely has older insulation, aging HVAC systems, single-pane windows, and a sprawling footprint to heat and cool. In a place like Thornton, Broomfield, or Lakewood, that can translate into $400 to $600 a month in utilities alone—just to keep the place livable. Add on seasonal lawn care, landscaping, snow removal, and general upkeep, and the costs begin stacking up faster than most retirees anticipate.
But that’s only the beginning. Maintenance isn’t an “if”—it’s a “when.” Roofs, furnaces, water heaters, electrical panels, and driveways all have expiration dates. As you age, you’re less likely to handle these tasks yourself, which means hiring out the work—often at a premium. When something fails unexpectedly, you may find yourself pulling thousands from your retirement accounts just to restore function. And unlike when you were 40, there’s less time to recoup that investment.
Then comes insurance. In Colorado, increased risks from wildfires, hailstorms, and flash floods have pushed insurance premiums higher year after year. Older homes are particularly vulnerable—not just to damage, but to rate hikes. A roof that’s ten years old, even if perfectly intact, might flag you for a policy increase. Outdated electrical systems or lack of fire mitigation measures can lead to coverage exclusions or higher deductibles. And this isn’t slowing down—insurers are becoming more selective every year.
But the financial wildcard—the one that catches so many seniors off guard—is property taxes.
In 2020, Colorado voters repealed the Gallagher Amendment, which had historically kept residential property tax growth in check. With those constraints gone, assessments in counties like Adams, Arapahoe, Jefferson, Boulder, Denver, and Douglas have jumped 20%, 30%, even 40% in a single reassessment cycle. That might translate into an extra $800 or $1,500 a year in taxes—not for a new benefit, not for a new feature—just because your neighborhood appreciated faster than the state average.
And while Colorado offers the Senior Homestead Exemption to help reduce taxes for those 65 and older, it only applies if you’ve lived in your home for at least ten years. If you move—even if it’s to a smaller, more affordable home—you may lose that exemption entirely, unless you meet the temporary portability rules, which are set to expire in 2026. For many, this puts them in a taxing limbo: either stay and swallow increasing bills, or move and risk starting over with higher taxes on a smaller home.
I’ve seen this scenario play out again and again. One couple in Wheat Ridge had a modest mortgage and manageable utilities, but their property taxes doubled over six years. The final straw came when a $3,400 tax bill landed in their mailbox. They hadn’t budgeted for it. That unexpected bill became the moment they realized: staying was no longer affordable.
And here’s where your Realtor comes in—not as a salesperson, but as your strategic consultant.
A Realtor who specializes in retirement and legacy planning doesn’t just look at market comps. They help you evaluate the total cost of staying in your home. They show you how utilities, maintenance, insurance, and taxes intersect with your retirement income. They don’t just say, “you should sell.” They help you model scenarios: stay five more years and renovate? Sell now and rent for flexibility? Move into a smaller, newer, more efficient home with no stairs and lower monthly costs? Which path increases your financial safety? Which one protects your mobility? Which one aligns with your long-term goals?
And they don’t do this alone. They’re in communication with your CPA and your financial advisor. They understand the impact of property tax changes on your estate plan. They know how capital gains exclusions work. They help time the market move in a way that supports—not derails—your retirement strategy.
If your Realtor isn’t offering this level of insight and support, then quite frankly, you deserve better.
At this stage of life, your home is more than just a house. It’s a cornerstone of your financial future. It’s a variable in your healthcare plan. It’s a legacy you may pass on—or liquidate—to help fund the next chapter. Staying in place might still be the best choice for you. But you owe it to yourself to confirm that with clarity, not assumption.
The right Realtor isn’t waiting to help you when you decide to list. They’re helping you decide when listing makes sense—or whether staying makes more. They’re reviewing your housing picture annually, alongside your investment and tax reviews, because they understand that housing is wealth.
The true cost of staying put isn’t just measured in dollars. It’s measured in peace of mind—or the lack of it. The right advice now can mean a retirement lived with confidence, not regret.
So What Should You Do Now?
This isn’t a sales pitch. I’m not here to tell you to list your house, refinance, or move across the country. What I am here to say is: you deserve clarity.
You deserve to know the full picture of what your home is costing you—not just in payments, but in insurance, utilities, maintenance, and taxes. You deserve to know how your home compares to others in your area and what today’s buyers are actually looking for. And you deserve to feel empowered—not paralyzed—by the options in front of you.
Some of you will decide to stay. Some will sell. Some may decide to rent part of the home, or remodel to age in place. There’s no one-size-fits-all answer here. But what I want you to know is that you don’t have to make this decision in the dark.
You have somewhere to turn.
Every week, this column will unpack the real estate market through the lens of real homeowners in Colorado. We’ll look at trends, opportunities, risks, and strategies—specifically for people who want to get it right. You’ve built a life you care about. Now it’s time to make sure your housing choices reflect and support that life.
The real estate market is changing—but that doesn’t mean you can’t win. It just means you need a better game plan.
If your current advisor isn’t watching these shifts closely, it may be time for a second opinion. The next move in your real estate journey should begin with strategy—not guesswork.
For investors and homeowners looking to adapt their portfolios to today’s shifting market, strategic guidance is essential. Our team at Keller Williams Preferred Realty offers in-depth planning aligned with today’s economic realities.
This article is based on data available as of June 16, 2025, and reflects forecasts from leading housing research firms and industry experts. Readers are encouraged to conduct their own research on these items in addition to reading this article. This article is not meant to be legal, or tax advice, as the author is not a qualifie expert in these matters.
Author: Kato J. S. Mitchell – Operating Principal; Red Zebra Holdings, Westminster Asset Holdings, Operating Principal; Keller Williams Preferred Realty, LLC, & Lead Broker; The Mitchell Team @ Keller Williams Preferred Realty, LLC
Kato turned his top real estate sales team into a real estate empire. He has heavily invested in real estate in the Denver Metro Market and is Operating Principal of the largest real estate office north of I-70 in Colorado (Keller Williams Preferred Realty, LLC) While Kato’s real estate team “The Mitchell Team @ Keller Williams” remains a strong competitor in the Denver Market where they specialize in complex distressed properties (divorces, foreclosures, REO, and probate/estate sales) as well as investment properties, Kato now spends more time helping today’s Realtors learn how to help their clients as trusted professionals. “We help people manage wealth through real estate. Our first goal with clients is to increase their net worth past one million dollars quickly,” states Mitchell. Kato serves as a multi-year member of the Colorado Real Estate Commission’s Forms Committee assisting in the drafting of the contracts used by all Colorado Real Estate Agents. Kato was awarded the Denver Business Journal’s “40 Under 40” in 2006. His real estate team: The Mitchell Team has been awarded the “5280 Magazine “Five Star Award for Excellence Winner” ten Years in a Row (2012 – 2021) for “Outstanding Customer Service” and Superior Quality as voted by their clients!” They are one of three companies in the state to receive that award more than six times. Most importantly, he is a husband & a father to three amazing children.
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