Login
Downsizing seniors could unlock new buying opportunities
Older Australians considering downsizing could create new buying opportunities, as data reveals a stark contrast in the number of spare rooms between generations.
The realestate.com.au GemLife Downsizing Australia Report surveyed Australians over 50 and found they generally have more spare bedrooms than younger generations.
According to the data, more than four in five or 85 per cent, of Australians aged 55 and older live in homes with two or more spare bedrooms.
By comparison, a quarter of households aged 25–54 have no spare rooms, and 5 per cent have fewer rooms than their family size requires.
The report said that smaller homes were ideal for downsizers, yet one to three-bedroom houses and units made up less than half of all homes built between the 2016 and 2021 Censuses.
According to the data, there has been a need for purpose-built housing for the older demographic who are likely to want to downsize.
As one-third of the population is expected to be aged 55 or older by 2050, older Australians are encouraged to downsize, allowing their housing stock to be used more efficiently.
REA Group Senior Economist Angus Moore said Australia’s housing needs will shift as the nation’s demographics evolve.
“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,” he said.
“Encouraging older and smaller households to downsize will be critical for ensuring we meet the needs of our aging population and use the housing we currently have more efficiently.”
GemLife Managing Director and Group CEO Adrian Puljich said purpose-built solutions, including land lease communities, may motivate older Australians to downsize.
Puljich added that purpose-built solutions would also enhance the quality of life for older Australians.
“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.
Puljich said that when there are appealing alternatives to older Australians, they are often willing to downsize and often wish they had done so sooner.
Alternatives include homes that are easy to maintain, close to the people and places they are familiar with, and designed to accommodate their current lifestyle.
“Land lease communities are one of Australia’s fastest growing housing types because they are specifically designed for this demographic,” he concluded.