New survey highlights reluctance among older Australians to move amid housing crisis
Nearly seven in 10 older Australian homeowners are choosing not to downsize, despite ongoing concerns over the country’s deepening housing crisis, a new report has revealed.
Survey findings from insurer Australian Seniors indicate that just 19% of Australians whose children have moved out have already relocated to smaller homes, while another 13% are considering the move. The majority (69%) have decided to remain in their existing properties.
The data highlights that Baby Boomers were the most likely group to downsize over the past year. However, equal proportions of Boomers and Generation X have chosen not to move. The highest rate of non-movers was among high-income earners — those making more than $200,000 annually.
The findings come amid heightened scrutiny of housing policy ahead of the federal election, as the nation braces for an anticipated shortfall in new dwellings. The Urban Development Institute of Australia's (UDIA) State of the Land Report 2025 forecasts that the government’s target of delivering 1.2 million new homes by 2029 could fall short by nearly 400,000 properties.
The Retirement Living Council (RLC) is now calling for changes to existing policy frameworks that it argues are discouraging older Australians from moving into age-appropriate housing. In its latest report, Removing Rightsizing Roadblocks, the RLC proposes reforms to the Age Pension assets test and Commonwealth Rent Assistance eligibility criteria.
According to the RLC, such adjustments could enable approximately 94,000 seniors to move into retirement communities without being financially penalised, freeing up thousands of larger homes for younger families.
“Prehistoric policies are locking older Australians in large family homes during a housing crisis when rightsizing initiatives should be front and centre to ease pressure on housing and healthcare systems,” said RLC executive Daniel Gannon (pictured above).
“It’s absurd that policies written decades ago are expected to keep up with modern day house prices and cost of living. Older Australians risk losing their pension while younger people are in housing limbo.”
The RLC estimates that proposed changes could not only ease pressure on housing availability but also reduce strain on public infrastructure. It projects that the reforms could generate up to $2.95 billion in stamp duty revenue for state governments.
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