The trend of rightsizing is gaining momentum in Australia. Defined as the process of finding a home that strikes an optimal balance between space, comfort and convenience, rightsizing is about tailoring to an individual’s current life stage, financial situation, and lifestyle needs. 

To gain a better understanding on rightsizing and how it is impacting the Australian housing market, Temple & Webster commissioned a nationwide research study. Finding the Right Fit: The Future of Rightsizing in Australian Housing unpacks the results and identifies the issues Australia is facing with its growing housing crisis

This poses an issue and is creating a gap between what people want, and what’s actually available. With older Australians after practical, accessible homes and families looking for more room to grow, the housing market is starting to intensify.

Key findings from the report include:

  • Australians are on the move: One in four Australians plan to move house within the next two years, with renters showing even higher intent (one-third).
  • Rightsizing is the main reason for this: 67% of respondents cited ‘rightsizing’ as a key reason for relocating. Those with the highest intention of moving either did not have spare rooms (28%) or had three or more spare rooms (25%) and wanted to increase or reduce the size of their homes, respectively.
  • Apartments are less popular due to the lack of outdoor space (67%) and the lack of internal living space (46%).  The study also found that 60% of apartment dwellers valued access to communal spaces as a key factor in their living experience. 
  • Yet apartments prove a necessary option: 61% of 25-54-year-olds said they would consider moving into an apartment due to affordability, while 24% of total respondents indicated they were transitioning to an apartment or townhouse, citing lower maintenance and closer proximity to amenities.

Rightsizing has transformative potential, but the housing options need to be made available, and there are changes that can be made in the Real Estate sector to make flexible living more accommodating and to mitigate the impact of Australia’s housing crisis. For example: 

  1. Creating more viable long-term rental options and developing more affordable housing options.
  2. Enhancing the experience of apartment living by ensuring soundproofing, communal green spaces, and other shared facilities are introduced. The creation of co-working spaces, allowing residents to maximise their personal living space by decreasing their need for a home office. 
  3. Homes for older Australians, including apartments, should be practical, accessible, and located near essential services, and satisfy their preference for personal space and lock-up parking.

At Temple & Webster, we commissioned this research to better understand how Australians are feeling about their homes, especially when it comes to their life stage and finances and offer practical strategies and insights into how to best cater for these needs. 

By addressing the identified challenges in the housing market, stakeholders can work together to create a more resilient and inclusive ‘rightsized’ housing landscape in Australia. 

To download Temple & Webster’s ‘Finding the Right Fit: The Future of Rightsizing in Australian Housing’ report in full, please visit the website: https://www.templeandwebster.com.au/rightsizing 

Lucy Sutherland is director of insights & trends at Temple & Webster.