However were these people thinking they were going to survive retirement if not by selling the 4,000 sq. ft. house for one of 1600 sq. ft? Or moving from 3 vehicles to 1? Seems to me that they could start early with this concept..... I guess it depends upon where you are in the lay offs, wouldn't it? If you're the first guy in town to lose his job, selling the expensive house might not be difficult. But if the local economy has already started to tank, you may not find a buyer at the price you need to sell for.
I never knew it was so difficult to downsize. I've known so many who have.