Retirement
Retirement villages offer affordable housing amid market crisis, study finds
Retirement
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today.
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today.
The 2023 PwC-Property Council Retirement Census reveals that two-bedroom units in retirement villages are on average 43 per cent cheaper than homes in the same postcode across Australia.
Daniel Gannon, Executive Director of the Retirement Living Council (RLC), said the data highlights the crucial role retirement villages play in addressing housing affordability.
"Retirement villages are an affordable housing solution available to older Australians in an otherwise unaffordable housing market," Mr Gannon said.
Key findings from the census include:
- The average cost for a unit in a retirement village is $559,000, compared to the $986,000 median house price in the same postcodes.
- Retirement villages are operating at near full capacity, with only a five per cent vacancy rate.
- Residents report high satisfaction, with a national net promoter score of +44.
Mr Gannon noted that retirement communities also benefit younger homebuyers by freeing up larger homes when older Australians downsize.
However, the tight vacancy rate is concerning given the projected increase in Australians aged over 75 from 2 million to 3.4 million by 2040.
"This means governments need to get their skates on and actually start planning for ageing populations – starting with age-friendly housing," Mr Gannon said.
Tony Randello, CEO of Aveo, emphasised the need for planning reforms to enable operators to provide more contemporary, age-appropriate, and affordable housing across the country.
PwC Australia partners Meredith Chester and Funminiyi Oduko highlighted the sector's challenges, including rising construction costs and limited land supply, while noting that affordability remains a key advantage of retirement living compared to the residential housing market.
The Retirement Living Council, which represents for-profit and not-for-profit owners and operators of retirement villages and seniors' living communities, is calling for policies to deliver more age-friendly homes and better services in retirement communities across Australia.
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