The high cost of stamp duty is one of the leading financial concerns for homeowners who want to downsize.

The 2026 Downsizing Australia report says it can add tens of thousands of dollars to the cost of moving.

A quarter of those surveyed for the realestate.com.au and GemLife report say it is holding them back from moving. Somewhat surprisingly, their biggest concern is not about money, but about the inconvenience of moving, with almost a third of respondents saying they are put off by the hassle of moving.

GemLife managing director Adrian Puljich says millions of older Australians are living in huge homes with spare bedrooms sitting empty but the cost of downsizing is putting them off selling.

Realestate.com.au senior economist Anne Flaherty says encouraging older households to downsize will ensure Australian housing is used more efficiently.

The report shows 88% of households aged 55 and over have at least one spare bedroom, while 60% have two or more spare bedrooms.