Moving is kinda stressful though, but if you can manage that downsizing would probably be the right call.

A lot of kids move back after college. I definitely wouldn’t downsize until my family was secure and for sure no longer needed the space.

Now the question is it better to allow that space sit vacant or rent out the space.

I think there is a defensible position for renting out a temporarily unused space in your primary home versus buying vacant properties solely to rent.