Abstract: This study investigates the principal factors driving the residential mobility decisions (i.e. to stay or move) of the rising number of older Australians using the Australian Panel Data, Household, Income and Labour Dynamics of Australia (HILDA), 2001-2010. The HILDA survey is particularly suited for this research because it comprises a comprehensive range of mobility related variables that uncover the prevalence, frequency, timing and distance of moves over the period of the survey. Many older people may wish to age in place rather than move in with their children or be institutionalized, and continue to be active in their local communities, maintaining their existing social networks. However, they often change location due to higher levels of relationship breakdown and healthcare needs in later life. Modified housing, downsizing to a lower density dwelling, the movement from an owner-occupied home to a rental property, and the need for institutionalized healthcare are closely associated with the location decision of those who move. This research therefore examines the mobility decision of older Australians as they stay or move and identifies major socioeconomic and demogrpahic factors that provide a contextual understanding of ageing in place or ageing in neighbourhood.