The ABS released national population figures revealing that the fastest-growing age cohort is between 75 and 79 years old, with an annual growth rate of 6.73% significantly outpacing the overall growth rate of 2.48%.

RLC Executive Director Daniel Gannon said Australia's three tiers of government need to address and solve the challenges associated with housing this demographic cohort now.

"Over the next two decades, the number of Australians over 75 will increase from two million to 3.4 million people, which will have socio-economic impacts on the nation," Mr Gannon said.

He noted that 710,000 Australians are set to retire within the next five years, which will impact housing markets, hospitals, workforces and economies.

Mr Gannon criticised state budgets for delivering "the same old stock standard approach around the country with zero creativity or strategy" when it comes to housing for older Australians.

"This lack of vision is frankly contemptuous to the 4.2 million retirees around Australia and the 710,000 people looking to retire in the next five years," he said.

"Governments need to get creative and expand their vision for older Australians and their ageing needs."

Mr Gannon highlighted that retirement villages across the country save the commonwealth government $945 million every year as Australia's population continues to rapidly age, through better-designed homes that minimise trips and falls, leading to fewer GP visits, shorter hospital stays and delayed entry to aged care.

"All of this reduced interaction with doctors and hospitals releases capacity back into health systems for those who need it most, when they need it most," he said.