Downsizing is not happening even if policy makers think it’s a good idea for older generations. This is the bottom line of a brief from AHURI. So, what is downsizing?
First, this concept is mostly about home owners not renters. There is financial downsizing to release equity by buying a cheaper home. But only 20 per cent of owner-occupiers aged 55 to 64 years in 2001 moved to another home of lesser value by 2016 (this age cohort was the most likely to have ‘financially downsized’ during this 15 year period).
Physical downsizing is often seen as reducing the number of bedrooms, but this is a crude measure. This is because the number of bedrooms isn’t the issue. The size of all the rooms could be smaller, but it’s the size of the yard and maintenance that really matters to older people.
Fewer than 15 per cent of older home-owners moved to another home with fewer bedrooms between 2001 and 2016. This research serves to confirm the key study by Bruce Judd and team where they found all bedrooms were in use. Also, older people spend more time at home, so it’s their space for recreation and activities
The title of the brief is, Understanding downsizing: What are the different types of downsizing and how common is it? There are references to other related AHURI research in this brief.
Downsizing: But where to?
The idea of downsizing is appealing to empty-nesters. But where can they go? The biggest barrier to downsizing is finding a suitable home in the right location. Many empty nesters just want a smaller home and yard. Governments have a vested interest in older Australians having a home in which it is safe in later life. It’s cost effective for everyone.
Sometimes it isn’t the home they want to downsize – it’s the garden maintenance. ‘Empty’ bedrooms do not necessarily mean that a home is under-utilised. This is a crude measure because spare bedrooms are needed as guest and hobby rooms. Spending more time at home means the home has to do more. A small home can limit options for different activities.
The Conversation discusses these issues and has links to well-researched reports. The title of the article is, Half of over-55s are open to downsizing – if only they find homes that suit them.
A similar article was published earlier in The Conversation titled, Lack of housing choice frustrates would-be downsizers.
When it comes to house size, Bruce Judd and colleagues from UNSW found that retirees generally want three bedrooms for flexibility of lifestyle. Some for visiting family and looking after grandchildren. Others need room for hobbies or a study. Some couples sleep separately for health reasons. Typically, retirees spend more time at home now that they are not working, so space becomes even more important.
Baby Boomers defy predictions.
Housing experts predicted “the great senior sell-off”. But baby boomers aren’t downsizing – they are staying put.
Mimi Kirk in a CityLab article looked at new research from Harvard Joint Center for Housing Studies that discusses issues related to housing type, affordability and the different expectations of millennials and boomers. Millennials are generally uninterested in the style of their parents’ homes. So there goes the myth that boomers are (selfishly) holding onto homes that millennials could buy.
Policy makers think that downsizing is largely about finances and homes being too large to suit ageing in place. But the evidence is something else. Research findings put to bed some of the myths younger policy makers have about older people and their ideas on housing.
“…high cost of new multi-storey apartments means that householders don’t necessarily have enough money from the sale of their larger family house to buy an apartment, particularly after stamp duty, bank and real estate agent fees, and moving costs are included.” AHURI report, 2018.
Suitable housing in the future?
The Livable Housing Design Standard is now part of the National Construction Code. All jurisdictions other than NSW and WA have adopted all or part of it. This means more universally designed homes in Australia, and the ability to age in place.