A retiree living in Sacramento recently reflected on their situation while helping their child sign a lease for a new apartment. They realized that they were living in a large single-family home with unused rooms. Watching their child sign the contract made them question why they were still staying in such a big house. Moving closer to their child and downsizing is one option, while maintaining their current home is another.

First, let's look at how the two options differ within the same budget. Sacramento is served by the city-owned utility, SMUD. As of 2026, the average bill for a household using 750 kilowatt-hours is about $227, which translates to roughly 25 cents per kilowatt-hour. However, from June to September, the rate structure changes, and peak hour rates can rise to over 30 to 40 cents per kilowatt-hour. The SMUD board has decided to increase rates by 3 percent each year in 2026 and 2027, which will add about $4.35 to the average household's monthly bill.

Next, let's consider home prices and maintenance costs. The median price for single-family homes in Sacramento County ranges from $546,000 to $580,000, while the median listing price in the city is around $540,000. Condos vary by area; for example, condos in the Natomas area are trading between $350,000 and $400,000. The median HOA fee (Homeowners Association fee) in Sacramento County is $335 per month, while the statewide median is $300, typically ranging from $90 to $700.

Insurance costs are also worth examining. Homeowners of single-family homes must insure the entire building and yard, while condos often have the HOA cover the building's structure, which can reduce individual insurance costs. However, the extent to which insurance and reserve funds are included in the HOA fees can vary by complex, so it's advisable to check directly with the management office before signing a contract.

Let's also look at property taxes. In California, Proposition 13 sets a basic tax rate of 1% based on the purchase price, with the effective tax rate, including local taxes, ranging from 1.1% to 1.3%. Older homes often have lower assessed values, resulting in lower property taxes, but buying a new home eliminates this benefit. If you are over 55, Proposition 19 allows you to transfer your existing property tax base to another home in California up to three times. If you are considering downsizing to be closer to your child, checking this program first may be a good starting point.

When comparing the two options within the same budget, maintaining a single-family home priced between $546,000 and $580,000 will result in fluctuating property taxes and summer electricity bills. In contrast, moving to a condo in Natomas priced between $350,000 and $400,000 allows you to keep the price difference while managing predictable living expenses with a fixed HOA fee of around $335. If your goal is to move closer to your child, weighing this price difference against the distance to their home and nearby amenities is advisable. When coordinating the timing of the sale, it can be helpful to schedule the move to avoid overlapping with the summer rate increases.

Ultimately, whether to maintain a large home with unused rooms or to pay maintenance fees and move to a smaller home closer to your child is a matter of prioritizing your lifestyle. By adding up electricity costs, HOA fees, insurance, and property taxes, the choice may become clearer. This article is not investment or legal advice, and it is recommended to consult with a real estate professional and tax advisor before making any contracts.