Downsizing not a priority for most seniors
Most seniors are reluctant to downsize to smaller residences, with an increasing number of older Australians preferring to live in homes with at least three bedrooms, according to new research.
The National Seniors Productive Ageing Centre (NSPAC) study of 2,000 National Seniors’ members aged over 50 years examined the proportion of seniors who downsized in the past five years, or who were considering downsizing in the future, and the motivating and discouraging factors affecting their decision to downsize.
Only one quarter of people living alone in houses with three or more bedrooms were considering downsizing.
Of those seniors who had downsized in the past five years, 43% had moved into a three bedroom house, compared to only 17% who had moved to an apartment/unit.
Michael O’Neill, National Seniors chief executive, said the results showed seniors had a strong preference to remain in larger homes.
“Policymakers talk of seniors downsizing and freeing up family-sized homes but it seems older Australians aren’t so keen to do so,” Mr O’Neill said.
“Considering the lack of policy incentives to downsize, and the strong emotional attachment all Australians have to their family home, these findings are hardly surprising.”
The factor that discouraged the most people from downsizing was that it would “take too much effort” (44%), especially for people aged over 75 years.
The cost of stamp duty was reported as a disincentive by 33% of people; and only 28% of homeowners on the Age Pension said the previous federal Labor government’s proposed pilot scheme to encourage downsizing, which has since been scrapped, would have influenced them to move.
Mr O’Neill said it was clear there were still too many disincentives for seniors to downsize.
“There have been no real measures to encourage seniors to downsize,’’ he said.
“Policy interventions to reduce financial barriers such as cuts to stamp duty and a commitment to address the lack of age appropriate housing in Australia could increase people’s incentive to downsize.”
He added there was also a growing need for seniors to keep spare living space available to provide care for grandchildren or parents.
