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With housing affordability putting the pressure on those looking to purchase, making use of non-traditional properties can help to avoid costs. One affordable solution is found within retirement villages.
According to a census conducted by PwC, the cost of a two-bedroom unit in a retirement village is on average 43 per cent cheaper than homes in the same postcode across the country.
Retirement Living Council executive director, Daniel Gannon, encourages younger home buyers to take advantage of these trends: “Retirement villages are an affordable housing solution available to older Australians in an otherwise unaffordable housing market.
“But these retirement communities aren’t just helping older Australians with housing options – they’re helping younger home buyers too. When an older person or couple makes the decision to ‘rightsize’ into a home that is better suited to their ageing needs, they’re injecting a bigger home back into the market for younger Australians.”
“Given the number of Australians aged over 75 will increase from 2 million to 3.4 million by 2040, a tight vacancy rate is concerning news for consumers and governments alike. This means governments need to get their skates on and actually start planning for ageing populations – starting with age-friendly housing,” said Gannon.
The data revealed that 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. Operators in these communities are held to high regard by residents, scoring a national net promoter score of +44.
However, many retirement villages are operating at full capacity, making it hard to enter. There’s a reported 5 per cent vacancy.
Aveo CEO, Tony Randello, said: “This census data offers crucial benchmarking for retirement living operators and it confirms that in the midst of a housing crisis, retirement living communities continue to serve as an affordable housing option where older Australians can thrive.
“With current supply already at capacity, planning reforms are essential for us as operators to provide more contemporary, age-appropriate, and affordable housing across the country.”
According to PwC Australia partner, Meredith Chester, the need for more affordable retirement living is crucial for catering to an ageing population.
“As our population ages, the demand for high-quality, accessible retirement living options has never been more critical. The sector is facing a unique set of challenges and opportunities that it must confront head on,” said Chester.
Fellow PwC Australia partner, Funminiyi Oduko, added: “From rising construction costs and limited land supply to evolving preferences of the ageing population, the landscape of retirement living is rapidly changing while affordability remains a key component of the retirement living sector in comparison to the residential housing market.”
