Unlocking housing stock: Downsizing trends in focus

There is potential to unlock housing across Australia with three in five downsizers open to relocating to over-50s lifestyle or retirement communities, but a new report has revealed a shortage of suitable dwellings for our ageing population.

REA Group and GemLife’s Downsizing Australia Report analyses the motivations, needs and concerns of downsizers across the country is based on insights from 2,051 buyers who responded to the relestate.com.au Property Seeker Survey.

The report revealed 85 per cent of 55 and above households have two or more spare bedrooms, compared with just one-third of those aged 25-54 years.

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Source: realestate.com.au GemLife DownsizingAustralia Report. ABS SIH 2019/20.

Source: ABS; Projection series 29(B); projections as at June 2022

This figure is largely due to 80 per cent of households aged 55 and older consisting of one or two people, compared to 41 per cent of those aged 25–54.

By 2050, ABS projections indicate that over one-third of Australians will be aged 55 or older, a stark contrast to four decades ago, when around one-sixth of the population was in this age group.

While the population is ageing, smaller homes ideal for downsizers such as one-to-three-bedroom units and houses – accounted for less than half of homes built between the 2016 and 2021 Censuses, underscoring the need for purpose-built housing for this demographic.

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Source: realestate.com.au GemLife DownsizingAustralia Report. ABS

Source: realestate.com.au Property Seeker Survey 2025

Two key drivers influencing those looking to downsize were lower-maintenance living (34%) and retirement (29 per cent).

Whereas the main barriers to downsizing were the hassle of moving for prospective downsizers (18 per cent) and not finding the right size home (17 per cent).

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Source: realestate.com.au Property Seeker Survey 2025

Source: realestate.com.au Property Seeker Survey 2025

The report revealed two thirds or 67 per cent of downsizers would stretch their budget for certain features or amenities.

Other common priorities saw 72 per cent of downsizers influenced by the number of bedrooms, 62 per cent in having a garage and 50 per cent prioritising natural light.

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Source: realestate.com.au Property Seeker Survey 2025

Source: realestate.com.au Property Seeker Survey 2025

Downsizers also place a much higher premium on being close to medical and health

services – 47 per cent vs. 27 per cent of all buyers as well as greater emphasis on sustainability with over half (55 per cent) view solar energy and water systems as key property features, compared to 39 per cent of all buyers.

“As our demographic make up changes, so too will the types of housing we need,”

REA Group Senior Economist Angus Moore said.

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Angus Moore

“Older households are smaller, but much of our existing housing stock and the housing we build is still large, detached homes that may be better suited towards larger family households.”

Mr Moore said encouraging older and smaller households to downsize will be critical for ensuring we meet the needs of our ageing population and use the housing we currently have more efficiently.

Bob Cooper recently downsized to GemLife Palmwoods on the Sunshine Coast Hinterlands with some of the key factors driving the decision including the location, amenities and social aspect.

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Bob Cooper recently downsized to GemLife Palmwoods

“I didn’t know how I would go living in close quarters – but when I got here it felt right and I’m very happy with the decision,” he said.

“What I’ve got feels quite spacious, it’s a gated community and everyone is here for the same reason to extract the most they can out of life.

“When we go out for a walk in the afternoon, you run into people – it doesn’t feel like you are in a confined space.”

GemLife Managing Director and Group CEO Adrian Puljich said purpose-built solutions, such as land lease communities, were key to motivating older Australians to downsize, while improving their quality of life.

“Many older people stay put simply because there is a lack of suitable housing for their over 50s and beyond, but struggle to maintain often large, ageing family homes,” he said.

Adrian Puljich

Mr Puljich said land lease communities are one of Australia’s fastest growing housing types because they are specifically designed for this demographic, with supporting facilities that promote wellbeing, connection and lifestyle and a financial model that helps free-up capital for retirement.

“When there are appealing alternatives – and that means homes that are easy to look after, close to the people and places they love, and designed for how they live now, and will in the future – we see they are willing to downsize, and often wish they had done so sooner.”

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