Australia’s population is aging. By 2050, over one-third of Australians will be aged 55 or older. This will be a profound shift from even just four decades ago, when around one-sixth of the population was in this age group.
As our demographic make up changes, so too will the types of housing we need. 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.
Read the full report here: realestate.com.au GemLife Downsizing Australia Report
Looking at a survey of property seekers, downsizers rate low-maintenance living, retirement readiness and family proximity as their most important reasons for looking for a new home. Additionally, solar energy, garage space and outlook/views are some of the most popular ‘must-haves’ for downsizers.
However, there are barriers that discourage downsizing, including moving hassle, cost uncertainty and emotional ties.
Unlocking downsizing will be critical for ensuring we meet the needs of our aging population and use the housing we have efficiently.
Australia is experiencing a significant demographic shift toward an aging population.
By 2050, ABS projections indicate that over one-third of Australians will be aged 55 or older, a profound shift from four decades ago, when only around one-sixth of the population was in this age group.
Australia is not unique in this regard. The aging population reflects broader global trends of increasing life expectancy, coupled with declining birth rates.
Read the full report here: realestate.com.au GemLife Downsizing Australia Report
These demographic changes will have profound effects across the economy, and housing markets.
Older households in Australia tend to be smaller compared to their younger counterparts. Among those aged 55 and older, 80% are one or two person households, compared to just 41% of 25–54-year-old households.
This is unsurprising and reflects the lifecycle of these older households. Many 25–54-year-old households have dependent children. As a result, 40% of these households have four or more people living in the home, and an additional 19% have three.
Older and smaller households naturally have different housing needs, though many still occupy larger homes. As a result, older households typically have more spare bedrooms - 85% of 55+ households have two or more spare bedrooms, with one in five having three or more spare bedrooms. This contrasts with younger households, which are more likely to fully utilise available bedrooms, or have just one spare bedroom.
Read the full report here: realestate.com.au GemLife Downsizing Australia Report
While the population is aging and household sizes are getting smaller, the types of homes we build still cater to large households.
Between the 2016 and 2021 Censuses, nearly 40% of the roughly one million homes that were built were four-bedroom detached houses. For many older households, that likely represents three spare bedrooms. These homes may present challenges for older households looking to downsize to reduce maintenance.
Smaller homes – one-to-three bedrooms units and houses – together accounted for less than half of homes built across those five years. And of those, a quarter were three-bedroom houses – still a large home for a one- or two-person household.
Read the full report here: realestate.com.au GemLife Downsizing Australia Report
Additionally, these larger homes are predominantly built in outer suburbs which may not appeal to downsizers. Many prospective downsizers report that they would prefer to reside close to family.
Downsizers are overwhelmingly driven by two top motivators when purchasing their next home. One-third (34%) say they want a lower-maintenance property - nearly twice the rate seen among all buyers - while 29% cite retirement as their primary reason.
Just behind these leading drivers, 19% seek wealth creation through property and another 19% look for a better quality of life. A further 15% indicate a desire to be closer to family or friends.
For 13%, a specific development or home they like would inspire the move to downsize, while 12% hope to free up capital. Another 12% no longer wish to rent.
Read the full report here: realestate.com.au GemLife Downsizing Australia Report
These insights suggest that housing offerings for downsizers should prioritise easy-care design (single-level layouts, lock-up-and-leave features), retirement-ready amenities (level access, practical bathrooms) and locations close to family, friends and community services. Aligning product, pricing and messaging to these needs will ensure strong resonance with this growing segment.
Many downsizers are ready to right-size, but the thought of packing up and letting go still holds them back. Three in ten (31%) worry about the sheer hassle of moving - which could include the process of decluttering and packing - while 23% haven’t found a smaller home that truly fits their needs. Emotional attachment to their current property (24%) and fears of losing space (19%) or community connections (21%) further dampen enthusiasm. A smaller share cite cost-related worries - 14% aren’t convinced downsizing will save them money. Yet a third (34%) report no hesitations, showing that a well-supported journey could unlock this market.
End-to-end relocation assistance, thoughtful floorplans and clear cost-savings comparisons can ease these emotional and logistical concerns, and convert hesitant downsizers into confident buyers.
Read the full report here: realestate.com.au GemLife Downsizing Australia Report
