Is 2026 the Year to Upsize, Downsize or Invest?

With interest rates still shaping buyer decisions, many homeowners are asking the same question in 2026: is now the right time to make a move? The answer depends on your circumstances, but across our local markets we’re seeing three distinct groups making strategic property decisions — upsizers, downsizers and investors.

At Nicholls & Co, each of these groups is approaching the market with a slightly different mindset.

Upsizers Navigating Higher Rates

For families looking to upgrade to a larger home, higher interest rates have encouraged a more measured approach — but they haven’t stopped people from making the move altogether.

Many upsizers are focusing on the long-term lifestyle benefits of moving to a larger home, particularly in family-focused suburbs like Hunters Hill, Gladesville and Ryde. While borrowing capacity may be slightly reduced compared to previous years, many homeowners are also benefiting from the strong growth in property values over the past decade, which can provide significant equity to support the next purchase.

In many cases, upsizers are finding that buying and selling within the same market can help balance the impact of higher rates, particularly when trading up within the same local area.

Downsizers Capitalising on Strong Local Prices

For downsizers, the current market can present an excellent opportunity.

Many long-term homeowners in Hunters Hill, Putney and surrounding suburbs are sitting on significant capital growth, allowing them to unlock equity while transitioning into a lower-maintenance lifestyle. Well-located family homes continue to attract strong buyer interest, particularly from younger families wanting to move into these established communities.

Downsizers are increasingly choosing quality apartments, townhomes or single-level homes that allow them to remain close to local amenities, cafes and waterfront walks while simplifying day-to-day living.

For many, the move is less about timing the market and more about lifestyle flexibility and financial freedom.

Investors Watching Rental Demand in Ryde and Gladesville

The investment conversation is also gaining momentum, particularly as rental demand across Sydney remains strong.

Vacancy rates across Sydney have remained well below the 3% level typically considered a balanced market, sitting around 1–1.5% in recent data, highlighting the ongoing shortage of rental properties.

Locally, areas such as Ryde and Gladesville continue to attract tenants thanks to their proximity to employment hubs, transport links and lifestyle amenities. In Gladesville, vacancy rates have been recorded around 1%, reflecting the tight supply of available rental homes.

With strong tenant demand and stable yields — particularly for well-presented units — some investors are seeing opportunities to enter or expand their portfolio while demand remains high.

The Right Move Depends on Your Situation

Whether you’re considering upsizing, downsizing or investing, the key is understanding how the current market aligns with your long-term goals.

Every property journey is different, and a tailored strategy can make all the difference when navigating today’s market conditions. If you’re considering your next move in 2026, a conversation with the team at Nicholls & Co can help you explore the options available and plan the right next step.