There are more people in the world than ever before, but the amount of space we have to live in has not increased. More and more people are therefore having to compromise on their living arrangements by learning to live in smaller properties and making the best use of the space they have.

The average cost of a home nationwide is $199,900, though in more expensive states like Colorado, California, and New York, the average price zooms up to over $435,000. Everyone knows downsizing to a smaller home is greener, but did you also know it makes shrewd financial sense?