When Is the Right Time to Downsize Your Home?

Choosing if and when to downsize is a long, carefully considered decision. You may have always imagined selling the family home at a certain stage of life, perhaps to help your children enter the property market, free up funds, or simplify day-to-day living. For others, a life event, lifestyle change, or shifts in the property market can trigger the idea.

There are many reasons Australians consider downsizing, and it’s rarely a quick decision. Most people sit with the idea for months, sometimes years, talking it through with family and friends and weighing up what feels right. There’s no single “right” way to downsize. Every journey is different, shaped by factors such as timing, market conditions, the condition of your home, and personal circumstances.

Because downsizing can feel complex and overwhelming, support can make a meaningful difference. Homesuite was created to guide Australians through the downsizing process, helping coordinate the many moving parts involved in selling and relocating. From decluttering and preparing a home for sale, to connecting with trusted local agents, conveyancers, removalists, and utilities, Homesuite provides support across each stage of the journey, so you don’t have to manage it all alone.

Downsizing also isn’t just about moving into seniors housing. Many Australians are choosing to start the process earlier in life, driven by lifestyle preferences, financial goals, or the desire for a more manageable home.

Downsizing in Your 50s 

For many Australians, downsizing in their 50s is driven by lifestyle rather than age. As children grow up and leave home, a large family house can start to feel less practical and more difficult to maintain. The appeal of a home that’s more compact, manageable, and better suited to day-to-day living often becomes stronger at this stage.

Lifestyle factors play a key role in the decision to downsize earlier. Being able to walk to local shops and cafés, live closer to the city or the beach, and feel part of a connected community are common motivations. Research shows that more than half of Australians over 55 are open to downsizing, reflecting a growing shift toward lifestyle-led housing choices.

There is also a growing range of housing options that sit between the traditional family home and retirement living. Smaller houses, townhouses, and apartments can suit people in their mid-50s who expect to downsize in stages over time, adjusting their living arrangements as their needs and priorities change.

Downsizing in Your 60s 

For many Australians, their 60s are the most common time to consider downsizing. While 65 is often seen as a traditional retirement age, there’s no fixed point at which people must stop working. Some continue full-time or part-time work, while others transition gradually into retirement, depending on their circumstances and preferences.

This age group is also supported by a Government scheme that allows eligible downsizers aged 60 and over to make a one-off contribution of up to $300,000 to their superannuation from the sale of their home, provided the property has been owned for at least 10 years. This has made downsizing an attractive option for many people in this stage of life.

By this time, children have often left home and large houses may no longer suit everyday needs. Reducing space, belongings, and maintenance can free up time, energy, and funds. Many people in their 60s also consider downsizing as a way to support their children with housing, travel more, or simply enjoy a more flexible lifestyle.

Priorities often shift toward spending time with family, including grandchildren, travelling, and making the most of retirement years in a home that better fits current needs.

Downsizing in Your 70s 

Housing options in later life have evolved significantly, and retirement living looks very different to what it once did. Many modern, lifestyle-focused communities now offer shared facilities such as pools, fitness spaces, cafés, green areas, and organised activities, making convenience, connection, and lifestyle a central part of the experience.

Alongside these newer options, more traditional choices remain available, including retirement villages, aged care facilities, units, apartments, townhouses, and smaller standalone homes. For people downsizing in their mid-70s and beyond, priorities often centre on health, emotional wellbeing, access to services, proximity to family, financial security, and maintaining independence for as long as possible.

While everyone’s situation is different, most Australians who choose to downsize do so before the age of 70. For those who downsize later, decisions are often guided by changing needs and a desire for comfort, support, and quality of life.

The earlier you begin mapping out your downsizing pathway, the more informed and confident your decisions can be. Having clarity around how downsizing fits into your broader financial picture can make the process feel far more manageable.

If downsizing is something you’re considering, now or in the future, moneyGPS can help you explore your options with confidence. Through the platform, you can review your financial position and, if helpful, access support from trusted partners like Homesuite to guide you through the downsizing process when you’re ready.