Wednesday, October 14, 2026
Add as a preferred source on Google A new report reveals that for many downsizers, the desire is there to move out of large family homes, but a few major factors hold them back. Stamp duty is one of the leading financial concerns for Australians considering downsizing, adding tens of thousands of dollars to the cost of a move, according to the 2026 Downsizing Australia report by realestate.com.au and GemLife . Developed in partnership with GemLife, the report examines the housing market and the barriers and motivations influencing downsizers across Australia.
According to the report, 26% of respondents said stamp duty was a concern holding them back from moving. Picture: Getty It draws on responses from more than 2100 buyers to the realestate.com.au Property Seeker Survey, including a sample of people aged over 50 who said they were looking to downsize. The report identifies stamp duty as a leading financial concern, with more than one in four would-be downsizers saying the tax is holding them back from moving.
Stamp duty was the second most cited concern with 26% of downsizer respondents naming it, behind the hassle of moving (29%). Separate research by PropTrack and the e61 Institute, included in the report, found that a one-percentage-point increase in the stamp duty rate decreases housing turnover by about 7%. The report says this can add to the costs of moving and leave many homes underutilised.
Anne Flaherty, realestate.com.au senior economist, noted that stamp duty is among the range of barriers downsizers encounter. “The hassle and cost of moving, emotional ties to existing homes and communities, and concerns about ongoing fees can all stand in the way,” Ms Flaherty said in the report. “Importantly, downsizing isn’t a decision made at a single point in life.
It is shaped by changing circumstances and often influenced by family.” GemLife managing director and group CEO Adrian Puljich said the industry needed to listen to what homes and communities Australians want and remove barriers. “One example is stamp duty, which the research identifies as a significant concern for downsizers,” Mr Puljich said in the report. He noted that there are some options in the market today that address the stamp duty issue.
“Under the land lease model, homeowners don't pay stamp duty when purchasing their home – an important distinction when considering the financial implications of downsizing or rightsizing.” The broader picture According to the Australian Bureau of Statistics, 29% of Australians are aged 55 or over, a share projected to reach 35% by 2050. Half of downsizers prefer two-bedroom homes, while more than a third prefer three-bedroom layouts. Picture: Getty The report also takes a look at how housing supply can influence downsizing and how suitable communities could help make better use of existing housing stock.
Among its findings, 88% of households aged 55 and over have at least one spare bedroom, and 60% have two or more; among 25-to-54-year-old households, 32% have two or more. Around half of downsizers prefer two-bedroom homes, while more than a third say three-bedroom homes remain important. Yet just under half of homes built between 2016 and 2021 were one- to three-bedroom units or houses, reflecting a gap between supply and downsizing requirements.
The report also looks at what downsizers want in their next home: low-maintenance living (79%), security and peace of mind (62%) and proximity to amenities (61%). Meanwhile, two-thirds of downsizers with adult children (66%) say their children have some influence on the move. Are you interested in the latest in buying and building new?
Check out our New Homes section. Help us improve your reading experience Got a minute? Your feedback will help us build a better experience for you.
Help us improve this page
Source: Real Estate
