Right-size empty nester homes help ease property crunch

6 hours ago 2

News Corp Australia

First published 20 Apr 2025, 5:30am

Encouraging empty nesters to move into a right-size home for their needs could help with the housing shortage. Picture: Supplied

Two in every three Hobart’s empty nester households have no intention of downsizing and freeing up larger homes for younger families.

And some of the biggest populations of potential downsizers are sitting on properties in sought-after school zones.

Figures from an Australian Seniors survey show just 17 per cent of parents whose children have moved out of home have downsized, 15 per cent are considering it, and 67 per cent do not plan to move.

Separate Census data shows Lindisfarne, Bellerive, Taroona and Kingston Beach are home to some of the city’s largest populations aged over 50.

Lindisfarne has a large empty nester population, and is a desirable suburb for families.

Meanwhile, the Retirement Living Council’s Removing Rightsizing Roadblocks report urges an overhaul of Age Pension asset rules and Commonwealth Rent Assistance eligibility to ensure retirees aren’t penalised for moving into more suitable dwellings.

RLC executive Daniel Gannon said these changes would reduce demand on public housing, hospitals and aged care.

“Prehistoric policies are locking older Australians in large family homes during a housing crisis when right-sizing initiatives should be front and centre to ease pressure on housing and healthcare systems,” Mr Gannon said.

“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.”

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Daniel Gannon, executive director of the Retirement Living Council.

Real Estate Institute of Tasmania president, Russell Yaxley, said focusing on empty nesters transitioning to homes that suit their lifestyle is not just a good idea, but will contribute positively to Tasmania’s housing supply challenge.

When empty nesters move into more manageable, efficient homes, Mr Yaxley said it frees up larger family homes for growing families.

“Families then move from their first homes, which opens opportunities for young buyers and investors to enter the market,” he said.

“This cycle is not new or a secret, and encouraging empty nesters to move is challenging and demands a good supply of quality, well-located homes that suit their needs — single-level living, low maintenance, strong community connections, and access to amenities.

“It’s a golden opportunity for those willing to take up the challenge and provide this choice.”

Eleanor Creagh, PropTrack senior economist.

PropTrack senior economist Eleanor Creagh said as Australia grappled with a housing shortage, one of the big untapped sources was making better use of existing homes.

“There are many under-occupied homes around the country and even if we had just some of those offered up, that could unlock a lot of options for families,” Ms Creagh said.

The economist said that it was likely they were facing too many disincentives to relocate to overcome their emotional and cultural attachments to homes.

“The decision to downsize isn’t just financial, it’s a very personal decision. And the cost of stamp duty and a lack of suitable alternatives is a disincentive for a lot of older Australians — particularly given all the emotional and cultural factors at play,” Ms Creagh said.

Social demographer Mark McCrindle said empty nesters resisted moving for financial, practical and emotional reasons.

“This is the generation that has seen great benefit from that family home,” Mr McCrindle said.

“They’ve seen the land value increase and that is a key part of why they do not want to give up on that.”