The elderly are sitting on 500,000 spare bedrooms across Sydney. The past three censuses show that under-occupancy of established houses by older home owners is on the rise, with almost half their homes having one or two spare bedrooms.
But 91 per cent of the over-55s regard their current home as matching their needs. They have an overwhelming desire to remain in their own home for as long as possible, with professional care services.
It's not just the perceived suitability of their dwelling, but proximity to family and friends, shopping, transport and health services, and their familiarity with the local community and neighbourhood.
The ageing also have considerable concerns about the cost of entry fees and service levies of retirement villages, along with the isolation from family, friends and the outside world.
But neither the NSW government nor opposition seem to appreciate that achieving any success in relocating the elderly requires long-term schemes.
Last week in the state government budget and the opposition's reply, they instead offered one- or two-year schemes with zero stamp duty incentives designed to hurry older home owners into small sub-$600,000 new homes in order to make way for young families.
The housing preferences of the elderly was the theme of a recent 120,000-word report - after a three-year study - by the Australian Housing and Urban Research Institute, which concluded any demand for downsizing was not for very small dwellings or one-bedroom units, but for smaller three-bedroom dwellings, along with flexible dwellings with space for temporary guest bedrooms and multi-purpose rooms for hobbies, care of grandchildren, etc.
Single-level dwellings were considered very important. Whatever the size, it was important that dwellings be low-maintenance, have a small private outdoor area, good safety and security, and have provision to allow pets.
"The challenge for residential designers, builders and developers is to provide this housing in a manner that is marketable to all, to avoid enclaves of older people's housing," said Professor Bruce Judd of the University of NSW.
The study was funded by the institute and the Commonwealth Department of Health and Ageing.
Some 75 per cent of those aged over 65 own their home outright, while 26 per cent in the 55-64 age group still have a house mortgage. The highest concentrations of older home owners is in Sydney's outer south-western suburbs, the north shore and the Sutherland Shire and, not surprisingly, in concentrations on the north and south coasts.
"These older Australians have equity in their housing and are able to make housing equity choices such as moving to another dwelling or modifying their dwelling, and the efficiency and liveability of their domain will direct or influence their dwelling choices as they grow older," Professor Judd said.
Some 93 per cent of the older home owners live in the general community as opposed to 2 per cent in seniors developments and 5 per cent in other accommodation.
As would be expected, single-person households increased markedly with age. Two-person households peak in the 65 to 74 age group and then decrease.
While 82 per cent of the 480,000 houses of Sydney's elderly would be regarded as technically underused, with spare bedrooms, most owners actually regarded their dwelling as well-used and of a size suitable for their purposes, especially given they spend more time at home.
They want to accommodate friends and family, notably grandchildren. They want a spare room space for sewing, or other hobbies, or for ironing, exercise, office or library.
In terms of dwelling size, 81 per cent lived in dwellings with three or more bedrooms. About half lived in dwellings with a floor area of between 100 and 199 square metres and 36 per cent in dwellings with a floor area of 200 square metres or more. Half of all separate houses were on blocks of 500 to 999 square metres, with another 37 per cent having 1000 sq metres or more.
The study found close to a quarter of the surveyed households contained one or more temporary residents, which was almost double that in the general population.
"The interviewees indicated a diverse set of circumstances leading to temporary residents, including the need for emergency or transitional accommodation arising from relationship breakdown, returning from overseas, undertaking studies, or the need or desire to take in boarders," Professor Judd said.
He concluded that the findings challenged the presently accepted methods of calculating under-occupancy using the commonly accepted Canadian National Occupancy Standard based simply on the number, age, gender and relationships of permanent residents and the number of bedrooms.
Frequently Asked Questions about this Article…
What kind of homes do Sydney seniors prefer when they downsize?
Research shows downsizing seniors generally prefer smaller three‑bedroom dwellings or flexible homes that can accommodate a temporary guest bedroom or multi‑purpose room. Single‑level layouts, low‑maintenance finishes, a small private outdoor area, good safety and security, and pet‑friendly provisions are particularly important.
How common is under‑occupancy among older homeowners in Sydney and what does that mean for spare bedrooms?
The article notes Sydney’s elderly are sitting on roughly 500,000 spare bedrooms. About 480,000 houses occupied by older people would be classed as technically underused, with 82% having spare bedrooms — yet many owners still regard their homes as well‑used and suitable for their needs.
Why do most over‑55s choose to stay in their own home rather than move to retirement villages?
Around 91% of over‑55s feel their current home matches their needs. Key reasons include proximity to family and friends, shopping, transport and health services, familiarity with the local community, and the desire to remain independent with professional care services if needed. Many are also concerned about retirement village entry fees, ongoing service levies and potential social isolation.
Which dwelling features make a property more marketable to older buyers and long‑term tenants?
Properties that appeal to older buyers typically offer single‑level living, at least three bedrooms or flexible spaces, low maintenance, a small private outdoor area, strong safety and security features, and allowance for pets. Space for hobbies, guest stays or caring for grandchildren is also valued.
Do short‑term stamp‑duty incentives encourage older homeowners to downsize?
The article suggests short‑term one‑ or two‑year stamp‑duty incentives are unlikely to drive widespread downsizing. Experts argue successfully relocating older owners needs long‑term, thoughtfully designed schemes because seniors value community ties, services and the right dwelling type over a hurried financial incentive.
Where are the highest concentrations of older home owners in and around Sydney?
The highest concentrations of older homeowners are in Sydney’s outer south‑western suburbs, the North Shore and the Sutherland Shire, and unsurprisingly along parts of the north and south coasts.
What are the investment implications of seniors wanting spare rooms and flexible space?
For property investors, this points to steady demand for three‑bedroom or flexible single‑level homes that aren’t tiny one‑bed units. Designing or selecting properties with spare‑room flexibility, low maintenance and good local access to services can make a home more attractive to older owner-occupiers and long‑term renters.
Are commonly used occupancy standards accurate for measuring under‑occupancy in older households?
The article highlights that standard measures like the Canadian National Occupancy Standard can misrepresent older households. Many older homes host temporary residents, guests or multi‑use rooms, and owners intentionally keep spare bedrooms for grandchildren, hobbies or emergencies — so simple bedroom‑count metrics can overstate true under‑occupancy.
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