Why SA’s Empty Nesters Are Staying Put – And What It Means for the Housing Market
South Australia is home to a growing housing challenge – and surprisingly, it’s not just about first-home buyers struggling to break into the market. Instead, it's the state’s “empty nesters” who are quietly holding onto family-sized homes, contributing to a bottleneck in available housing. According to new data from Australian Seniors, a staggering 79% of older South Australians whose children have moved out have no plans to downsize. That’s significantly above the national average of 69% .
The Emotional and Economic Roadblocks to Downsizing
The numbers are stark. Only 17% of SA’s empty nesters have downsized, and just 4% are even considering it . These figures point to a cultural and emotional resistance that isn’t just about property prices or market conditions – it's deeply personal.
PropTrack’s senior economist Eleanor Creagh noted that SA property prices have soared nearly 80% over the last five years . While this could theoretically give downsizers a financial incentive, stamp duty costs, a lack of suitable alternatives, and strong emotional ties to the family home act as significant barriers.
As InView Property Group’s Lynda McNeil put it, many older homeowners are reluctant to sell unless they believe a family like their own will move in. There’s an aversion to seeing their long-loved home knocked down or redeveloped – a deeply personal hurdle that many can relate to.
Where the Potential is Locked
Census data reveals the top suburbs where downsizing opportunities could be unlocked, including Golden Grove, Hope Valley, West Lakes, Wynn Vale, and Somerton Park . These areas are not only family-friendly with strong school zones but also locations where homes are tightly held for 10 to 15 years, restricting turnover.
If released, these properties could significantly help meet housing demand for young families trying to enter the market.
What the Retirement Living Council (RLC) Proposes
The Retirement Living Council has called for reform to unlock as many as 59,576 homes across Australia – with 8027 in SA alone . Their Removing Rightsizing Roadblocks report suggests that tweaks to the Age Pension asset test and rent assistance eligibility could encourage older Australians to move into more suitable retirement living options.
According to the RLC’s Daniel Gannon, these changes would not only free up family homes but could also generate $2.95 billion in stamp duty revenue for state governments while easing the load on aged care and public housing.
A Personal Story: When Downsizing Makes Sense
Take George Dostal, a retired photojournalist from Hindmarsh Island, as an example. After 18 years, he’s finally decided to sell – not because of market pressures, but due to personal loss and isolation. He’s now moving into Brighton Dunes, a retirement village by the beach, after waiting years for a spot to open up.
For George, downsizing is as much about community and health as it is about finances. And that’s the case for many seniors who might be open to change if the right options existed.
What Can Be Done?
For real change to occur, policymakers must consider:
Stamp duty reform: WA and Victoria offer concessions for downsizers, but SA currently does not .
More accessible housing: Ground-floor bedrooms, lifts, and large entertainment areas are essentials for many seniors.
Education about body corporates: A major concern is unfamiliarity with strata fees and rules, which puts people off apartment living.
Better community planning: Seniors want to stay near their doctors, chemists, friends, and cafes. Moving out of their suburb isn’t just unappealing – it’s a dealbreaker.
Final Thoughts from Renown Lending
At Renown Lending, we understand that financial decisions are never just about numbers. They’re about people, stories, legacies, and lifestyles. That’s why we advocate for flexible lending solutions – whether you're an empty nester thinking about your next move or a young family trying to secure your first home.
While downsizing might not be right for everyone, it’s time we break down the barriers and open up the conversation. If you're looking to finance a rightsizing move or explore equity options without needing to sell just yet, we’re here to help.
Sources:
Australian Seniors Survey, 2024
PropTrack, “Home Price Index March 2024”, realestate.com.au
ABS 2021 Census QuickStats – Golden Grove, Hope Valley
Property Council of Australia – Retirement Living Council Reports
SA Government RevenueSA, “Stamp Duty” – revenuesa.sa.gov.au
