It's a fair question. With housing affordability remaining a national challenge, downsizing is becoming not just a lifestyle choice, but a practical strategy for many households.

The move could also enable downsizers to tip as much as $200,000 - or even more - into their retirement nest egg, bringing you closer to retirement.

But moving into a smaller property doesn't have to mean leaving a favourite suburb or neighbourhood.
 

If you keep an eye on new real estate listings, something smaller nearby could suit you better as you near retirement.

New research from Muval has calculated where downsizers can gain the most, analysing both the average dollar savings and the percentage of property value when moving from larger to smaller homes across 50 of the nation's most populated cities.