Almost nine out of 10 Australian households aged 55 and over have at least one spare bedroom, according to the GemLife Downsizing Australia 2026 report released by Real Estate. The findings show that 88 per cent of older households maintain at least one unused room, while 60 per cent have two or more spare bedrooms sitting empty across the country.
Aging population highlights housing supply gaps for older Australians
Australia’s population is aging rapidly as the country enters a period of significant demographic shift. Data from the Australian Bureau of Statistics shows that Australians aged 55 and over currently make up 29 per cent of the population, a share predicted to climb to 35 per cent by 2050.
Realestate.com.au senior economist Anne Flaherty said a clear gap exists between current housing supply and what older Australians actually need when they decide to downsize. Encouraging smaller households to transition out of large properties will help meet the demands of an aging population and use existing housing stock more efficiently, according to Ms Flaherty.
Data from the report reveals that only 32 per cent of households aged 25 to 54 maintain two or more spare bedrooms. Meanwhile, construction figures show that just under half of all homes built between 2016 and 2021 were one- to three-bedroom units or houses.
Downsizers prioritize low-maintenance living despite facing moving obstacles
The report surveyed more than 2,100 property seekers, including older buyers looking to transition out of large properties. Roughly half of downsizers expressed a clear preference for two-bedroom homes, while more than a third still require three bedrooms.
Low-maintenance living emerged as the top priority for 79 per cent of downsizers. Security and peace of mind motivated 62 per cent of respondents, and 61 per cent prioritized proximity to local amenities.
Despite the desire for convenience, older Australians face notable obstacles when considering a move. Three in 10 downsizers are deterred by the physical hassle of moving, and 26 per cent cite expensive stamp duty costs as a major barrier to purchasing a new home. Family ties also play a role, with two-thirds of downsizers who have adult children noting that their children influence the relocation decision.
Land Lease Sector Growth And Lifestyle Shifts
GemLife managing director and Group CEO Adrian Puljich said the conversation surrounding downsizing needs to focus on what people gain rather than what they leave behind. Mr Puljich noted that people reach this life stage for different reasons, but generally seek greater freedom and lower maintenance without sacrificing space for visiting family and friends.
The land lease sector has emerged as one of Australia’s fastest-growing housing models because it directly targets those benchmarks. Mr Puljich emphasized that the industry must continue keeping pace with strong demand as the national population ages.
Housing Market Questions
What percentage of older Australians have spare bedrooms?
Almost nine out of 10 households aged 55 and over, or 88 per cent, have at least one spare bedroom. Furthermore, 60 per cent of households in this age bracket maintain two or more empty rooms.
What are the main reasons older Australians hesitate to downsize?
Additionally, 26 per cent point to the high cost of stamp duty associated with buying a new property.
What type of homes do downsizers prefer?
Around half of downsizers prefer two-bedroom properties, while over a third still look for three-bedroom homes to accommodate family and guests.
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