We are in the process of downsizing. We move into our downsizer in 2 weeks time. We have moved from a large 4 bedroomed house with a large garden in a village well served by public transport, but where supermarkets, trains, doctors, dentists etc were all 5 miles away to a 3 bedroomed house with a small garden and off street parking close to the centre of a small town.
Bungalows tend to be mainly in the suburbs, and personally I prefer to sleep upstairs. if you buy a house, make sure the stairs could take a stairlift, if required.
The things that governed our decision was firstly to be somewhere where as much as possible of our future likely needs could be met without getting into a car and secondly somewhere more convenient for our children. They lived 100 & 200 miles away, but linked by the same motorway.
We also checked the town out for the presence of activities we could get involved in that we would enjoy. There is no point moving somewhere new, wanting to build a social life and finding there is nothing going on that interests you. We excluded several locations because of this.