While interest rates continue to be high and cost of living pressures keep biting, older Australians living in large houses they no longer need could benefit hugely from selling their property and moving somewhere more affordable.

The Downsizing Index, from startup Downsizer.com, shows the top spots where residents of each of Australia's capitals are downsizing to.

Michael Blythe, former chief economist at CommBank, compiled the index, and believes downsizing is important for both the older Aussies involved and the broader housing market.

"Downsizers can free up equity and can boost their incomes, assisted by government incentives to place some of the funds into superannuation," Mr Blythe said.

"Downsizing also frees up housing stock for younger families."

The index is based on demographics, dwelling suitability, health indicators, financial indicators and mobility.

Mr Blythe said the index captured the differences in categories between the region and the capital city itself, to give an idea of the likelihood of downsizing activity.

A positive score on the index means the area scored higher than its respective capital city across the categories, while a negative one means it is below.

He believes it's information in which households, governments and developers should take note.

"This kind of data is valuable...to identify where the downsizing focus should be as we battle with the current nation-wide housing crisis and the longer-run pressures from the ageing population," he says.

Top downsizing spots from Sydney

Area

Downsizer Index Score

Outer West and Blue Mountains

4.98

Sutherland Shire

3.52

Northern Beaches

2.95

Outer South-West

2.28

Baulkham Hills and Hawkesbury

1.74

Top downsizing spots from Melbourne

Geographical Area

Downsizer Index Score

Outer East

4.44

Inner South

3.65

Inner East

1.41

North-West

0.78

South-East

0.73

Top downsizing spots from Brisbane

Geographical Area

Downsizer Index Score

Brisbane’s East

7.2

Logan-Beaudesert

2.66

Ipswich

1.17

Brisbane’s North

0.23

Moreton Bay-South

0.16

Top downsizing spots from Adelaide

Geographical Area

Downsizer Index Score

South

3.98

West

0.65

North

-1.51

Central and Hills

-2.9

Top downsizing spots from Perth

Geographical Area

Downsizer Index Score

South-West

11.1

Inner

9.47

North-East

8.65

North-West

6.32

South-East

4.81

Top downsizing spots from Tasmania

Geographical Area

Downsizer Index Score

South-Eastern Tasmania

9.42

West and North-Western Tasmania

6.04

Launceston and North-Eastern Tasmania

1.6

Hobart

-2.01

The suburbs where Aussies just won't let go

While the reasoning behind downsizing might be tough to argue with, it can be equally hard to move on from the home you've lived in for decades.

New data from PropTrack has revealed the Australian suburbs that seem to be grabbing residents' hearts the most, where the average homeowner holds on to their property the longest.

The list for houses consists exclusively of suburbs in Greater Sydney and Melbourne, and tended to be more prestige areas with only two of the ten having a median price under $1 million (based on recent sales data).

Units tend to be more prominent in regional areas.

Ten suburbs with the longest hold time (Houses)

Suburb

Region

Average hold period 2023 (years)

REA median price (August 2022 - July 2023)

Clarinda VIC 3169

Greater Melbourne

                                              24.40

$921,000

Vermont South VIC 3133

Greater Melbourne

                                              22.25

$1,425,000

Arncliffe NSW 2205

Greater Sydney

                                              21.20

$1,559,750

Monterey NSW 2217

Greater Sydney

                                              20.46

$2,330,000

Springvale South VIC 3172

Greater Melbourne

                                              20.43

$810,500

Allambie Heights NSW 2100

Greater Sydney

                                              20.16

$2,300,000

Watsonia North VIC 3087

Greater Melbourne

                                              20.12

$866,000

Collaroy NSW 2097

Greater Sydney

                                              19.82

$3,512,500

St Johns Park NSW 2176

Greater Sydney

                                              19.73

$1,100,000

Mont Albert VIC 3127

Greater Melbourne

                                              19.61

$2,384,000

Ten suburbs with the longest hold time (Units)

Suburb

Region

Average hold period 2023 (years)

REA median price (August 2022 - July 2023)

Carlton North VIC 3054

Greater Melbourne

                                              20.68

$685,000

Cremorne Point NSW 2090

Greater Sydney

                                              17.20

$1,450,000

Kirribilli NSW 2061

Greater Sydney

                                              16.14

$1,150,000

Narwee NSW 2209

Greater Sydney

                                              15.88

$575,000

Eastlakes NSW 2018

Greater Sydney

                                              15.86

$613,500

Minyama QLD 4575

Rest of Qld

                                              15.71

$575,000

Shelley WA 6148

Greater Perth

                                              15.68

$479,000

Canley Vale NSW 2166

Greater Sydney

                                              15.40

$405,000

Kalamunda WA 6076

Greater Perth

                                              15.37

$502,500

Monterey NSW 2217

Greater Sydney

                                              15.17

$680,000

Picture by Nicholas Gonzalez on Unsplash



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