There’s a big downside to downsizing and it’s messing up the market

Many people talk about the property market as a ladder with the ultimate goal to buy and sell your way up the rungs. However, the current state of the market is reminding us that the market relies on sellers making their way back down the ladder, vacating the properties that sit at the top for the upsizing crowd. 

Yes, downsizers (often empty nesters) play a vital role in keeping the cogs of the market turning. So, why has downsizing become a roadblock? 

It all comes down to supply. More specifically, having the kind of supply that downsizers actually want to buy. 

New construction is missing the mark

Across Sydney, thousands of brand-new properties have hit the market over the past few years. At first glance, these properties leave downsizers with plenty of choices when giving up their home. However, these properties, often basic apartments in a tower of a hundred, leave a lot to be desired. It’s pushing downsizers toward staying put. 

Many viral videos on social media reveal the low-budget, corner-cutting approach used to get these apartments built as quickly and cheaply as possible. No wonder empty nesters don’t want to give up their family home!  

Downsizers are choosing not to downsize

We recently started working with a couple ready to move into a smaller, more convenient home. They wanted a low-maintenance property but didn't want to lose the sense of space and natural light they’d become accustomed to. We knew we’d face a massive challenge as their needs aren’t currently being catered to. Luckily, we had the connections and expertise to make things happen. 

While appropriate stock for downsizers is low, their preference for staying put means that the four to five-bedroom family homes with parking and a backyard that everyone is searching for aren't hitting the market. More and more apartments are popping up, but they tick very few boxes for those looking to move.

This roadblock is also putting strain on the rental market as fewer renters can convert into buyers and begin their journey up the property ladder. More renters equals higher demand, and higher demand means higher rents. Crazily high in a lot of places! 

So, what’s the solution? 

Is it time for the government to step in and begin managing the construction boom and working creatively to address housing affordability? Or is it up to developers to build homes people want to live in instead of focusing purely on profit?

Unfortunately, there is no short-term solution. With building costs astronomically high and builders with decades of success being forced out of business, we don’t think an abundance of quality, downsizer-friendly new homes will be hitting the market soon. 

So, we’re just going to continue doing what we do best! We understand how important it is to get creative on the property hunt and look in unexpected places for desirable homes with high ceilings, natural light and all the mod cons that downsizers desire. Please get in touch with our team if you’d like some help.