A proposal dubbed a “last homebuyer scheme” aims to help Boomers downsize, unlock supply, and ease Australia’s housing squeeze by matching the right homes to the right buyers.
Australia’s housing crisis is usually framed as a supply problem—but a growing argument is pointing to a mismatch inside the housing stock itself.
In recent debate highlighted through Misryoum coverage of SBS Insight’s upcoming episode on Housing BOOMERS. economists and housing advocates are spotlighting a striking figure: around 13 million empty bedrooms across Australia.. The claim isn’t that the country lacks buildings.. It’s that many of them aren’t being used where demand is greatest.
Misryoum takeaway: the “last homebuyer scheme” idea is designed to make downsizing easier for older Australians, freeing up larger family homes for younger buyers without forcing retirees into financially or logistically painful moves.
The “bedroom glutton” argument behind the push
Michael Blythe. an economist-in-residence at Downsizer.com and a former chief economist at the Commonwealth Bank. argues the mismatch is partly about what downsizers actually want.. He says many older households don’t picture “downsizing” as a move into a tiny two-bedroom apartment.. Instead. they want a home with enough space for practical daily life—dining at a proper table. accommodating hobbies. and dealing with belongings and plans that don’t neatly fit into small floorplates.
This is where the concept of “last homebuyer” differs from standard first-home incentives.. The goal isn’t to stimulate demand from people who aren’t already in the market.. It’s to reorganise the market by helping those who are already homeowners move—so the supply they currently occupy can shift to where it’s needed.
Why downsizing stalls: familiarity, costs, and red tape
Blythe points to practical friction too—stamp duty costs and process complexity can make the move feel like a penalty rather than a pathway. In discussion of what helps, he points to South Australia’s stamp duty removal as an approach that could make downsizing more attractive.
There’s also a timing problem.. Many older Australians are “asset rich and cash poor” after retirement—able to own property. but with income that drops sharply.. That dynamic can make the move harder even when the new home would be more age-appropriate.. If you’re downsizing to reduce maintenance or improve accessibility. it can still feel risky when the transition itself demands money. time. and planning.
Misryoum perspective: these aren’t just personal inconveniences. They shape the whole availability of housing supply in the places where buyers are waiting.
A “last homebuyer scheme” could mimic first-home help
The logic is straightforward: if older homeowners receive incentives that reduce transaction costs and simplify moving. then they are more likely to trade down.. When they do. the larger home they leave behind can become available for younger families. potentially easing pressure at the entry end of the market.
Misryoum also notes an important behavioural angle: incentives work best when they reduce both the financial friction and the psychological hesitation.. Downsizing isn’t only a spreadsheet decision.. For many households. it’s tied to identity—where they’ve lived for years. how they see their future. and whether they feel ready to change.
Blythe also flags that governments and developers have room to adjust. Older Australians may not want “mini apartments,” but rather housing that’s easier to maintain while still practical for daily life.
The hidden underuse of downsizer super
Blythe’s broader claim is that the scheme is too little used relative to the number of people who could benefit.. Misryoum takeaway: even when policy exists, uptake can stay low if the option isn’t well understood or feels confusing.. When households don’t know what tools are available, the “last homebuyer” pathway can remain theoretical rather than practical.
Real-world impact: freeing homes without forcing panic moves
Blythe describes his own dilemma as an example of the tension at the heart of the policy conversation.. At 65, living in a four-bedroom home, he says he isn’t planning to downsize right now.. Still, he acknowledges that at least some of the empty bedrooms in his situation reflect the broader pattern being discussed.
That tension matters because it explains why “downsizing potential” doesn’t always translate into actual supply movement. A policy that only targets costs may not be enough; people also need confidence that the new home will fit their life and that the move won’t trap them in a compromise.
What happens next for Australia’s housing supply
If governments reduce the financial barriers, and if developers build downsizer-friendly housing that matches what older buyers ask for, the “empty bedroom” argument could shift from headline numbers to measurable supply change.
The Housing BOOMERS episode airs on SBS at 8:30pm on 28 April, and can be streamed on SBS on Demand—timing that suggests the discussion may continue to gain traction as more homeowners and families weigh the same question: when and how do you move, without losing what you’ve built?