A whopping two in three Victorian empty nesters have no intention of downsizing and freeing up their homes for younger families.
And some of the biggest populations of potential downsizers are sitting on properties in some of the city’s most sought-after school suburbs, locking thousands of empty bedrooms out of the market.
It comes as the Retirement Living Council of Australia has estimated almost 60,000 family homes could be freed up nationwide if just two tweaks were made for the nation’s retirees.
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Extraordinary figures from Australian Seniors surveys shows just 17 per cent of parents whose children have moved out of home have downsized, while only 15 per cent are considering it.
Separate Census data shows Wheelers Hill, Camberwell, Eltham and Brighton East are home to some of the city’s biggest populations aged over 50.
The same suburbs are also home to extraordinary average homeownership periods in excess of 15 years that put them in the city’s top 30 suburbs for owners refusing to sell up and move on.
The Australian Seniors figures were collated in research conducted by MyMavins and covered responses from more than 1200 Australians aged 50 and up who are current, or former, empty nesters.
1 Irene Court, Wheelers Hill, has been listed for sale after “decades” in the same family. It has a $1.6m-$1.76m asking price.
MyMavins consulting partner Tai Rotem said with as much as 80 per cent of empty nesters open to the idea of their kids coming back home, and a significant chunk hoping to leave their home to their children as an inheritance, there were significant reasons they weren’t thinking about selling.
However, 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 underoccupied 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.
With the Australian Seniors survey indicating the majority of empty nesters were not actively thinking about downsizing, the economist added that it was likely they were facing too many disincentives to relocating to overcome their emotional and cultural attachments to homes.
One of the biggest is stamp duty, which Ms Creagh said should be reviewed as it was an inefficient tax, while insufficient numbers of suitable homes for people to downsize to nearby is also likely a factor.
For sale for the first time in 28 years, 114 Rowell Ave, Camberwell, is expected to make $1.7m-$1.8m.
“But the decision to downsize isn’t just financial, it’s a very personal decision,” Ms Creagh said.
“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.”
The Retirement Council of Australia has proposed there could be an extra 59,000 homes freed up by adjusting the Age Pension test threshold from $314,000 to $550,000, as well as providing better eligibility for downsizers to access Commonwealth Rent Assistance.
The latter would potentially give more a place to relocate to, as it could impact access to retirement villages with homes designed with downsizers in mind.
“Housing markets have totally transformed in recent years, yet the Age Pension assets test and CRA eligibility remain relics of the past,” said Retirement Living Council executive director Daniel Gannon.
7 Rickson Place, Donvale, has been a family home for more than 50 years. It’s just been listed for $1.265m.
Real Estate Institute of Victoria chief executive Kelly Ryan said while there was a lot of focus on building new homes, there was also an issue with not “using what we have to its fullest”.
The REIV has previously proposed a last-home buyer scheme, under which stamp duty reductions would be used to incentivise older homeowners into moving into something that was a better fit for their needs.
“There’s a significant cohort that could be influenced to rightsize their lifestyle and help the housing construction we currently need,” Ms Ryan said.
“And these homes don’t necessarily go to just one family, but could become multiple homes — and that could increase the density in some of these prime areas … where they already have great schools and infrastructure.”
However, InView Property Group founder Lynda McNeill has worked extensively with downsizers and said many who did want a smaller home were deeply worried about what would happen to the place where they had raised their family.
9 Parr Court, Taylors Lakes, is up for sale after a decade owned by the same owners. It’s seeking $1.37m-$1.39m.
“There’s a lot of psychology of the feelings of what they are leaving behind,” Ms McNeill said.
“And a lot of them are in a position where they are very invested in who buys the home as they want a family to come in and love it the way they have. Some don’t like the idea that it might be knocked down and redeveloped.
“They want to see someone like them from 25 years ago coming into the home.”
She added that when they did buy a more modest home they generally sought a fairly modern unit or townhouse with big entertainment spaces, ground-level bedrooms and a lift if it was a double-storey or more residence — but generally weren’t interested in apartments as they didn’t like the idea of body corporate fees.
Melbourne’s Biggest Potential Downsizer Populations
| Suburb | Median price | Time owned (years) | Population aged 50+ |
| Wheelers Hill | $1,396,500 | 18.93471 | 9849 |
| Camberwell | $2,559,500 | 17.12332 | 9120 |
| Eltham | $1,230,000 | 16.07679 | 7624 |
| Brighton East | $2,052,500 | 15.07104 | 7141 |
| Taylors Lakes | $940,000 | 16.74186 | 6617 |
| Toorak | $4,710,000 | 13.85819 | 6007 |
| Donvale | $1,630,000 | 17.21153 | 5553 |
| Surrey Hills | $2,300,000 | 18.05279 | 5486 |
| Avondale Heights | $975,000 | 11.76712 | 5444 |
| Keilor Downs | $762,000 | 15.89047 | 4221 |
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