As New Zealand's population increasingly shifts into the 55-and-over age group—now nearly a third of the total population—housing considerations for older adults are coming under greater scrutiny. Many in this demographic are contemplating downsizing to homes that better suit their changing needs. However, recent research highlights a significant mismatch between this interest and the availability of suitable housing options.

A study commissioned by Squirrel Property Finance and conducted by TRA found that while 89% of homeowners aged 55 and above would consider downsizing, only 19% were actively seeking new homes. Mathew Tiller, head of research at LJ Hooker, emphasized the gap between willingness to downsize and the realities of the housing market. He noted that potential buyers often view available downsizer properties as involving too many compromises, such as multiple staircases, lack of garages or storage, or inconvenient locations too distant from healthcare, shops, public transport, and social networks.

The 2025 New Zealand Housing Survey supports this view, identifying older adults as an underserved group in terms of housing mobility. The Retirement Commission has also observed that many older homeowners wish to release equity or move into more manageable accommodations, but the supply of smaller properties—including traditional pensioner flats—has dwindled.

Tiller argued that addressing this issue goes beyond increasing the quantity of homes built; it requires delivering the right mix of housing to meet evolving needs. He framed housing as a cyclical system where enabling older adults to transition from larger family homes into well-designed smaller residences can free up larger homes for younger families or other households.

Despite a substantial share of new residential consents—between 43% and 45%—being for townhouses, flats, and units, these options often fall short for older buyers. Many new builds are two-storey, limiting accessibility, and may lack features critical for older residents, such as single-level living, garages, ample storage, and proximity to key amenities. Tiller highlighted the absence of a “one-size-fits-all” downsizer home and called for more single-level, universally designed homes in established neighborhoods, incorporating features like step-free entrances, wider circulation spaces, and adaptable bathrooms.

Location was also stressed as a vital factor in making downsizing feasible and attractive, with proximity to healthcare services, shopping, public transit, and community facilities being paramount. According to Tiller, a smaller, well-planned two-bedroom home with appropriate amenities could be more appealing than a larger, less accessible townhouse.

While downsizing alone will not resolve broader housing affordability challenges, facilitating these moves can improve the overall efficiency of New Zealand's housing stock. Tiller observed that housing policy has traditionally focused on entry points into homeownership but needs to address all life stages—from growing families and separation to retirement and accessibility needs.

Ultimately, the conversation centers on choice. Many older New Zealanders wish to remain in familiar homes and communities. For those who do wish to move, expanding genuine options with well-designed, accessible housing is crucial to meeting their needs as they age.