Older Australians face limited options as new homes fail to match their needs
Australia’s housing sector continues to prioritise large detached homes, leaving many older Australians seeking to downsize with few suitable alternatives.
Findings of the realestate.com.au Gemlife Downsizing Australia report showed that despite a demographic shift that will see the proportion of the population aged 55 or older significantly increase, most new builds remain four-bedroom houses—properties that do not reflect the needs of smaller, older households.
“By 2050, over one-third of Australians will be aged 55 or older,” said Angus Moore, executive manager of economics at PropTrack. “This will be a profound shift from even just four decades ago, when around one-sixth of the population was in this age group.
“Older households are smaller – with four in five having just one or two people. But much of the housing we build is still large detached homes that may not meet the needs of these older households, and many older households are already living in homes that are larger than they need.”
Survey data shows downsizers are primarily motivated by the desire for low-maintenance living, retirement readiness, and proximity to family. Features such as solar energy, secure parking, and attractive outlooks are also high on their list of priorities.
However, the market has not kept pace with these preferences, with smaller homes making up less than half of new supply in recent years, and many of those still being three-bedroom properties.
Barriers to downsizing remain significant, and these include moving hassle, cost uncertainty and emotional ties. Stamp duty is a particular concern, with research indicating that even a modest increase in the rate can reduce housing turnover by about 7%. These costs, combined with the emotional and logistical challenges of moving, mean that many older Australians remain in homes that no longer suit their needs.
“Downsizing is one of the most significant lifestyle decisions Australians make in later life – and one with far-reaching impacts for individuals, families, and the housing market,” said Adrian Puljich, managing director and group chief executive of resorts operator GemLife. “People want homes that are easy to look after, close to the people and places they love, and designed for the way they want to live now, and into the future. Downsizing is about so much more than moving house – it’s about opening the door to new possibilities.”
Puljich also highlighted the potential of land lease communities, which offer modern, low-maintenance homes and transparent financial arrangements. “By offering modern, low-maintenance homes alongside high-quality facilities – and a transparent financial model that removes costs such as stamp duty and deferred management fees – these communities provide a pathway that makes downsizing both achievable and desirable,” he said.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
