I downsized last year. I just moved about 14 miles away so still can connect with tons of family, friends in former area, go to family events, help out, etc.
Sold a bigger house in a more high status town for $425,000 and bought a a 1400 sq ft 3BR house in a safe, more working class town for $275,000. I can walk to everything I need (groceries, commuter train, post office, thrift stores!, public library, parks and some great local family owned diners) - bliss!
I only needed a $25,000 mortgage because I had so much equity to roll over into the new house so it was a definite necessity for FIRE for me.