Dallas homeowners who downsize from a four-bedroom to a two-bedroom home stand to profit more than homeowners in any other city in the United States, according to data from StorageCafe.
The average four-bedroom home has a value of $613,976 in Dallas, while the average two-bedroom has a value of $229,944. That’s a difference just shy of $400,000.
Factoring in annual tax savings ($6,098) and closing costs ($56,016), Dallasites stand to gain $372,796 when downsizing to a smaller home — that’s 120% of the cost of the average home in the area, making Dallas the most prosperous city in the country for downsizers. The city also ranked No. 8 in the country for overall dollar-value gains.
Dallas isn’t the only Texas city where downsizing leads to huge financial gains, though. Downsizers in Lubbock can earn 111% of the average home value; in Irving, 86%; Corpus Christi, 72%; San Antonio, 70%; and Fort Worth, 53%.
Those Texas-sized gains are due in part to the state’s steep property taxes for large single-family homes, StorageCafe said. Rates are near 2.2%, which is nearly double the national average. Therefore, households that downsize stand to gain a steady flow of extra annual cash.
