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A significant shift is underway in Australia’s property market as an increasing number of baby boomers opt to downsize, a move that is reshaping the real estate landscape. The Real Estate Buyers Agents Association of Australia (REBAA) has highlighted this trend, noting that many retirees are selling their family homes to unlock equity and alleviate financial pressures during retirement.
Recent research conducted by Finder has revealed that six per cent of Australians have downsized in the past year as a strategy to manage rising living costs. According to REBAA, this trend is predominantly driven by retirees aged between 60 and 80.
Acting REBAA President Zoran Solano has observed that the momentum behind this trend is growing as older Australians seek homes that are more manageable and offer greater financial flexibility. “We’re seeing a noticeable increase in baby boomers downsizing, not just for lifestyle reasons but to free up cash,” Mr Solano stated. He explained that many of these individuals are navigating the property market for the first time in decades, which can be a daunting experience. “Many haven’t bought or sold in decades, so navigating today’s fast-paced market can be overwhelming. It can almost be like working with first home buyers – they’re unfamiliar with current pricing, processes, and expectations.”
The preference among downsizers is for low-maintenance, single-level brick and tile homes that are suitable for ageing in place. However, Mr Solano pointed out that emotional attachments to long-held family homes can complicate the transition. “Some sellers have inflated expectations of their home’s value, while underestimating what it costs to buy again,” he noted. The stress of coordinating a sale and purchase within a short timeframe adds another layer of complexity to the process.
Stamp duty has emerged as a significant barrier for many retirees considering downsizing. “While some states offer concessions for pensioners, the thresholds are outdated and don’t reflect current market price points,” Mr Solano explained. He argued that the current system is inequitable, stating, “It’s unfair that someone in their 70s pays the same transfer duty as a 30-year-old.”
To address these challenges, REBAA is advocating for targeted reform. “We need targeted reform. Offering stamp duty concessions on properties up to $1 million for Australians over 60 would make a real difference,” Mr Solano suggested. Such measures, he believes, could facilitate the downsizing process for many retirees.
Finder’s research underscores the financial strain that many retirees face, with downsizing emerging as a crucial strategy to extend retirement savings. Mr Solano highlighted the broader benefits of encouraging this shift, noting that it could also help address Australia’s housing supply crisis. “Unlocking larger homes for younger families while helping older Australians live more comfortably is a win-win,” he said. However, he cautioned that without meaningful policy support, many retirees remain trapped in homes that no longer meet their needs. “But without meaningful policy support, too many are stuck in homes that no longer suit their needs.”
In response to these challenges, REBAA is urging state governments to prioritise policies that are friendly to downsizers. This includes broader stamp duty relief and streamlined processes for older sellers. By implementing such measures, the association believes that the property market can better accommodate the needs of an ageing population while simultaneously addressing housing supply issues.
As the population of baby boomers continues to age, their impact on the property market is likely to grow. With the right policy support, their transition could offer significant benefits not only for the retirees themselves but also for the wider Australian housing market.
Source: Newsdesk July 22, 2025. Property Buzz – Money & Market.
