A growing number of Australians aged 60 and over are selling their long-held homes and moving into smaller properties, according to the Real Estate Buyers Agents Association of Australia (REBAA). The trend is being fuelled by the need to access home equity and manage retirement finances, with recent research from Finder indicating that 6% of Australians downsized in the past year to cope with rising living expenses.

Zoran Solano, acting president at REBAA, said the shift is becoming more pronounced as baby boomers look for homes that are easier to maintain and better suited to their needs. "We're seeing a noticeable increase in baby boomers downsizing, not just for lifestyle reasons but to free up cash," he 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."

Solano noted that most downsizers are searching for single-level, low-maintenance homes that allow them to age in place. However, he said the process can be complicated by emotional ties to family homes and unrealistic expectations about property values.

"Some sellers have inflated expectations of their home's value, while underestimating what it costs to buy again," said Solano. "Add to that the stress of coordinating a sale and purchase in a short timeframe, and it becomes a daunting process."

Stamp duty remains a significant obstacle for older Australians considering a move. "While some states offer concessions for pensioners, the thresholds are outdated and don't reflect current market price points," Solano said.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 points to the financial challenges facing retirees, with downsizing becoming a common approach to stretch retirement savings. Solano added that supporting this trend could also help address the country's housing supply issues.

"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."