Property Council of Australia subsidiary the Retirement Living Council (RLC) says it welcomes the findings of the Federal Government’s Intergenerational Report, which affirms the importance of age-friendly communities as a key part of housing Australia’s rapidly ageing population.
The report has found that the number of Australians aged 65 and older will double in the next 40 years, while the number of people aged 85 and older is set to triple. These statistics will further compound the housing crisis, with the need for universally designed affordable housing units paramount for the country’s future.
RLC Executive Director Daniel Gannon says that governments on all levels need to understand the value of retirement communities in regards to affordable housing options.
“Retirement communities already play an important social and affordable role within the housing market, providing units that are on average 48 percent cheaper than the median house price in the same postcode,” he says.
“Encouraging and facilitating more seniors into retirement communities carries the added benefit of freeing up traditional housing stock for singles, couples, new and growing families.
“If more seniors are living in age-friendly communities, there is also significant economic upside for state and federal governments through reduced interaction with the health system and delayed entry to aged care, while more houses become available in the traditional real estate market.
“Australia’s population is ageing, which means our three tiers of government need to address and solve the challenges associated with housing this demographic cohort now, which would then help ease the national housing crisis.”
The Property Council’s own Retirement Census in 2022 found that retirement villages are at capacity. While the focus is solely on affordable housing developments for all at present, Gannon believes supply of retirement homes also needs to be boosted.
“It’s been no secret that Australia’s population is ageing, but what is being done at local, state and federal levels to prepare for this transition?
“We have a market which actually provides an affordable housing option when few other affordable options remain, it’s effectively at full capacity, and yet barriers to building more are emerging,” he says.
“Given the decrease in the forecast supply pipeline and with legislative reviews that will affect the sector currently underway in five separate states, we urge caution to policymakers.”
To read the 2023 Intergenerational Report, click here.
Image: Mernda Retirement Village by Six Degrees Architects
