Housing costs deter downsizing, changing jobs and having children
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Housing costs deter downsizing, changing jobs and having children

The soaring cost of stamp duty is making more Australians think twice about major life decisions

By Bronwyn Allen
Thu, Feb 15, 2024 9:58amGrey Clock 2 min

Housing costs, including a fivefold increase in stamp duty in just one generation, are dissuading Australians from rightsizing their homes at different stages of life, changing jobs and having children. A new report by economic research firm e61 Institute found  a quarter of Australians under 40 years of age have delayed changing jobs and more than one in five aged 30 to 40 years have put off having children due to the costs of changing homes.

The research is based on a survey of 3,000 Australians conducted last year that asked them a series of questions on their attitudes toward housing. It also found that almost 25 percent of family homeowners aged 50 or older who own properties with more bedrooms than household occupiers are putting off downsizing specifically to avoid the transfer tax.

While the cost of moving encompasses many expenses, the research shows stamp duty is an outsized component that has increased considerably since the early-to-mid 1980s amid property prices rising exponentially. The typical stamp duty bill now equates to an average of five months’ worth of take-home pay.

In Sydney, a median-priced home demands $44,500 in stamp duty, which is a 5.4-fold increase in four decades. Stamp duty in Melbourne is $42,500, which is a 6.1-fold increase and the largest among the cities. In Brisbane, the median property purchase demands $25,900 in stamp duty from investors, which is a 5.5-fold increase. But current concessions for owner-occupiers in Queensland reduce this to $18,700.

The report notes that deterrents to moving hurt people’s wellbeing directly and indirectly.

The direct costs are about being held back from a better-suited home — like closer to family, work, schools or other amenities, or a more appropriate amount of space,” the report states. “The indirect costs play out in the aggregate. Holding back people from changing jobs can weaken productivity, which can dampen wage growth and bolster inflation. And when people don’t downsize, scarce housing runs short.

Abolishing stamp duty was the most popular option chosen by respondents when asked about their main priorities for state and territory housing policies.

Dr Nick Garvin, e61 Institute’s research manager, said: Governments and policymakers must consider the unpopularity of stamp duty, and the indirect impacts stamp duty has on various other parts of the economy and people’s lives.”



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High-end homeowners are choosing to upgrade rather than relocate, investing in bespoke design, premium finishes and long-term lifestyle value.

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High-end homeowners are choosing to upgrade rather than relocate, investing in bespoke design, premium finishes and long-term lifestyle value.

By Jeni O'Dowd
Mon, Feb 16, 2026 3 min

Australia’s prestige homeowners are increasingly choosing to reinvent their existing properties rather than enter an uncertain property market, fuelling what industry insiders are calling a “Renovation Revolution.”

From heritage terraces to coastal retreats, this shift reflects a deeper change in mindset. Homes are no longer viewed as stepping stones, but as long-term assets worthy of thoughtful investment and personalisation.

“Homeowners are approaching renovation with purpose, balancing lifestyle needs, design aspirations, and long-term return on investment,” says Jodie Cramer, CEO of Andersens, a national flooring and interior finishes company.

“Viewed through this lens, renovating often makes more financial sense than moving. Homeowners with built-up equity are confidently premiumising their space, achieving better returns on capital.”

More than half of Australian homeowners were planning renovation or improvement projects within a year, with many considering structural changes such as reconfigured floor plans, extensions, or even additional levels.

Personalisation becomes the ultimate luxury

For affluent homeowners, renovation is no longer driven solely by financial logic. It is about crafting environments that reflect individual lifestyles, values, and aesthetic sensibilities.

“Home upgrades allow families to customise their spaces,” says interior designer Delena Pitman.

“They’re not always looking to move up the property ladder; they want to make where they are feel more like home. Renovations give people the freedom to design functional, comfortable, and visually inspiring spaces.”

This trend aligns with the broader luxury movement toward intentional living, where design choices prioritise comfort, wellbeing, and enduring quality over short-term trends.

Jodie Cramer

Flooring sets the foundation for luxury interiors

Among the most transformative elements in any high-end renovation is flooring, which establishes the visual and tactile foundation of a home’s design.

“Think of flooring as the canvas for your entire home,” Pitman explains. “Once it’s chosen, everything else — furniture, lighting, window treatments, and accessories — becomes easier to select, and the space feels cohesive and intentional.”

Premium materials such as engineered timber, natural stone and luxury vinyl planks are increasingly favoured for their durability and aesthetic appeal, while softer textures like wool carpet add warmth and acoustic comfort to private spaces.

Continuous flooring across open-plan living zones enhances spatial flow, while darker tones such as walnut or charcoal introduce richness and sophistication.

Designing cohesive, layered spaces

Today’s most successful renovations are guided by a holistic design approach, where flooring, cabinetry, lighting and furnishings work in harmony.

“Change the floor, and everything else either harmonises or clashes — it’s the anchor of your interior design,” says Pitman.

“Once the floor is selected, you can choose wall colours to complement or contrast, coordinate cabinetry and countertops, and adjust lighting to provide bright task illumination or soft mood lighting.”

This layered approach allows homeowners to create interiors that feel both elevated and deeply personal.

Renovation as a strategic property investment

Beyond aesthetics, renovation is increasingly viewed as a strategic investment decision. In prime suburbs and lifestyle regions alike, improving an existing home often delivers greater value than purchasing anew.

This approach enables homeowners to preserve location advantages while enhancing liveability, energy efficiency and long-term capital value.

Whether upgrading a waterfront residence, modernising a federation home, or refining a contemporary coastal retreat, the message is clear: in Australia’s luxury property market, the smartest move is often staying exactly where you are — and transforming it into something exceptional

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