A growing wave of baby boomers is reshaping Australia’s property market, with many selling the family home to unlock equity and ease financial pressures in retirement, according to the Real Estate Buyers Agents Association of Australia (REBAA).
Recent research from Finder revealed that six per cent of Australians downsized in the past year to manage rising living costs — a figure REBAA believes is being driven largely by retirees aged 60 to 80.
Acting REBAA President Zoran Solano said the trend is gaining momentum as older Australians seek more manageable homes and financial flexibility.
“We’re seeing a noticeable increase in baby boomers downsizing, not just for lifestyle reasons but to free up cash,” Mr Solano said.
“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.”
Mr Solano said most downsizers are seeking low-maintenance, single-level brick and tile homes suitable for ageing in place. However, emotional attachment 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 said.
“Add to that the stress of coordinating a sale and purchase in a short timeframe, and it becomes a daunting process.”
Stamp duty is another major barrier, he said.
“While some states offer concessions for pensioners, the thresholds are outdated and don’t reflect current market price points,” Mr Solano said.
“It’s unfair that someone in their 70s pays the same transfer duty as a 30-year-old.
“We need targeted reform. Offering stamp duty concessions on properties up to $1 million for Australians over 60 would make a real difference.”
Finder’s research highlights the financial strain many retirees face, with downsizing emerging as a key strategy to stretch retirement savings.
Mr Solano said encouraging this shift could also help ease Australia’s housing supply crisis.
“Unlocking larger homes for younger families while helping older Australians live more comfortably is a win-win,” he said.
“But without meaningful policy support, too many are stuck in homes that no longer suit their needs.”
REBAA is calling on state governments to prioritise downsizer-friendly policies, including broader stamp duty relief and streamlined processes for older sellers.
ENDS
For more information or to organise interview with Mr Solano please contact:
Bricks & Mortar Media | media@bricksandmortarmedia.com.au
