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Six-Figure Moving Costs Drive Homeowners to Upgrade Instead of Relocate

Attic Group

Key Facts:

·        Moving costs are largely non-recoverable, with expenses such as stamp duty and fees not contributing to a property’s value or usable space

·        Total moving costs can exceed $100K, driven largely by stamp duty; for a $1.5M purchase, this is approximately $65K in NSW and $83K in VIC

·        Homeowners are choosing to invest in improving their existing home, creating additional rooms and space rather than incur the significant upfront costs to relocate

Six-Figure Moving Costs Drive Homeowners to Upgrade Instead of Relocate

Rising costs of moving are reshaping how Australians approach upsizing

Sydney and Melbourne, 8 April 2026 – When homeowners outgrow their current home, moving to a larger property was once the logical next step. However, many are now reconsidering this approach. The significant upfront costs associated with selling and buying, particularly stamp duty on a more expensive property, are prompting more homeowners to remain in their existing homes and undertake improvements instead.

A key financial barrier is often the price difference when relocating. By way of illustration, a homeowner selling at around $1 million may look to purchase in the $1.3 million to $1.5 million range to achieve a meaningful increase in space. At the $1.5 million price point, stamp duty alone is approximately $65K in NSW and $83K in VIC, often the largest upfront cost.

 

Delving further into the cost of relocating

Selling a $1 million property can incur added costs exceeding $20K. Agent commissions in Sydney and Melbourne generally range between 1.8% and 2.5%, equating to approximately $18K to $25K, excluding additional marketing and legal expenses.

On the purchase side, stamp duty increases progressively with property value. Further costs, including conveyancing, inspections and loan-related fees, typically add between $1.5K and $4K, while removalist costs vary depending on distance and property access.

When combined with real estate agent commissions, legal fees and removalist costs, the total cost of upsizing can exceed $100K, prior to any increase in mortgage repayments.

 

Moving versus improving: a cost comparison

One of the most practical ways to create additional space is through well-considered home improvements within the existing footprint, whether by utilising often overlooked roof space for storage or transforming it into a functional living area. Simpler storage solutions can free up existing rooms with minimal outlay, while more substantial upgrades and extensions can create entirely new habitable spaces.

Industry estimates from residential builders and renovation specialists in Sydney and Melbourne indicate that converting an attic into a habitable room, such as a bedroom or home office, typically ranges from $80K to $150K+, depending on design and structural requirements. Second-storey additions, typically including additional bedrooms, a bathroom and living space, generally fall in the $350K to $500K+ range, depending on scope and finishes, and can be higher for larger extensions. Costs will vary depending on site conditions, design complexity and regulatory approvals.

In contrast, the transaction costs alone of moving from a $1 million home to a $1.5 million property can exceed $100K, much of which consists of non-recoverable stamp duty and fees that do not add to a property’s value or functionality. In this scenario, buyers must also fund an additional $500K in purchase price, bringing the total outlay to around $600K.

For many homeowners, this comparison highlights that similar, or in some cases lower, investment can be directed into upgrading their existing home rather than relocating. This allows them to create the living and storage spaces they need while remaining in the neighbourhood they know and value, with the added benefit of retaining that investment within their existing property.

 

Changing homeowner preferences

Property prices remain elevated. According to Domain’s December 2025 House Price Report, Sydney’s median house price reached $1,759,909, while Melbourne’s stood at $1,111,084.

With interest rates remaining elevated, more homeowners are assessing whether the substantial upfront costs of relocating are justified, particularly as these expenses do not enhance the home’s usability or contribute to its long-term value.

 

Creating additional space without relocating

This trend has led more homeowners to explore practical ways to unlock additional space within their existing property, avoiding the expense and disruption of moving.

Underutilised roof space can be transformed into accessible, functional storage through the installation of an attic ladder and flooring, helping to free up valuable living areas from clutter. Sealed, dust-proof storage solutions are also available, providing protected space for stored belongings.

For homeowners seeking additional living space, attic conversions can create a new bedroom, home office or private retreat within the existing home. Larger second-storey extensions offer even greater opportunity by adding an entirely new level with additional rooms, without compromising outdoor space.

These improvements not only resolve immediate space constraints but also enhance day-to-day living and contribute to the property’s overall appeal and long-term value. Importantly, the investment remains within the home rather than being lost to relocation costs.

 

Industry perspective

“We’re seeing more homeowners choose to create additional space within their existing home rather than take on the cost and disruption of moving. It allows them to adapt to changing needs in a practical and cost-effective way, while staying in the neighbourhood they already know,” said Andrew D’Apice, Build Consultant at Attic Group.

Attic Group is a registered builder operating across New South Wales and Victoria, providing comprehensive design, planning approval and construction services for attic and roof space projects.

 

atticgroup.com.au 

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About us:

Attic Group is a registered builder operating across New South Wales and Victoria, specialising in attic conversions, first floor additions and roof space solutions. Established in 1975 as Australia’s original attic ladder provider, the business has evolved to include attic storage, skylights, garage storage and more, while also manufacturing and importing European attic ladders for supply across Australia.

With over 50 years of experience, Attic Group delivers complete end-to-end residential space solutions, encompassing design, planning approvals and construction, underpinned by a steadfast focus on quality, safety and long-term value. Trusted by thousands of customers across Sydney and Melbourne, the company is recognised for delivering considered, high-quality outcomes aligned with modern living requirements.

Contact details:

Rebecca Stewart

[email protected]