Australia’s Baby Boomers Slow Housing Turnover, Worsening Shortage

Around 4.5 million Australian baby boomers, aged 62‑80, are holding onto their family homes longer than previous generations. This reduced turnover is keeping large, well‑located houses off the market at a time when the country faces a severe housing shortage. High transaction costs such as stamp duty and a lack of suitable downsizing options further impede movement.

Analysts estimate that about 1.3 million more homes are occupied by older Australians than would have been the case if they behaved like retirees in 2008 – roughly the number of dwellings the federal government aimed to add under its national housing target. The effect is expected to intensify through the 2030s and 2040s, widening wealth inequality as families that already own property stand to gain the most.

The demographic “traffic jam” adds a powerful, often overlooked factor to the usual explanations of the housing crisis, which include population growth, construction delays and labour shortages.