As Australia grapples with the challenge of meeting the Housing Australia Future Fund (HAFF) target of 1.2 million new homes by 2029, the Retirement Living Council (RLC) has proposed a novel solution.
The council has suggested that retirement communities be a pivotal component of the government’s housing strategy, especially as the nation’s population ages.
Daniel Gannon (pictured above), executive director of the RLC, said retirement communities not only support the ambitious HAFF target but also offer significant health and welfare benefits.
“The prime minister’s 1.2 million new homes target is an admirably ambitious one, but retirement communities can help achieve this lofty goal as Australia ages,” Gannon said. “The added benefit is that retirement villages can delay entry into taxpayer-funded aged care facilities through purpose-designed, happier, and healthier communities.”
Gannon said RLC is pressing the Prime Minister to count retirement units, officially recognised as dwellings by the ABS, towards the government’s HAFF targets.
RLC’s recommendation implies that retirement communities could account for 6% of the HAFF’s 1.2 million new homes target. This inclusion could help alleviate Australia’s housing supply issues, ensuring that the needs of older Australians are met.
The RLC report, Better Housing for Better Health, highlights the economic savings and health benefits of retirement villages. These communities are shown to save taxpayers nearly $1 billion annually by reducing the need for aged care services. Furthermore, residents enjoy enhanced happiness, physical activity, and social interaction, leading to decreased hospitalization rates and improved overall well-being.
Highlighting the urgency, Gannon pointed out that the number of Australians over 75 is expected to surge from two million to 3.4 million by 2040.
“Recently released ABS national population figures found that with an annual growth rate of 6.6%, the 75- to 79-year-old age group significantly out paces all other demographic cohorts,” he said. “Between now and 2030, the retirement industry requires 67,000 homes to be built to meet the existing levels of demand from older Australians. Of this amount, only 18,000 are currently planned.
“These 67,000 homes would represent 6% of the 1.2 million new homes target, meaning retirement communities can help the government solve Australia’s housing supply problem.”
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