Fresh data highlighted the affordability of units in retirement villages compared to Australia’s traditional housing market.
The 2023 PwC-Property Council Retirement Census revealed that a two-bedroom unit in a retirement village is, on average, 43% cheaper than homes in the same postcode.
The census indicated the average cost for a retirement village unit is $559,000, compared to the $986,000 median house price in the same postcodes.
The Retirement Living Council (RLC) stressed the vital role retirement villages play in providing affordable housing for older Australians.
“Retirement villages are an affordable housing solution available to older Australians in an otherwise unaffordable housing market,” said Daniel Gannon (pictured above), RLC executive director.
Gannon also noted that these retirement communities benefit younger home buyers.
“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,” he said.
The census reported that retirement villages are operating at nearly full capacity, with a 5% vacancy rate, and residents hold operators in high regard with a national net promoter score of +44.
“In the midst of a housing crisis, retirement living communities continue to serve as an affordable housing option where older Australians can thrive,” Aveo CEO Tony Randello said.
Given the expected increase in Australians aged over 75 from 2 million to 3.4 million by 2040, Gannon highlighted the need for government action.
“This means governments need to get their skates on and actually start planning for ageing populations – starting with age-friendly housing,” he said.
PwC Australia partner Meredith Chester noted the critical demand for high-quality, accessible retirement living options as the population ages.
Partner Funminiyi Oduko noted that the landscape of retirement living is rapidly changing, with affordability remaining a key component of the sector compared to the residential housing market.
Retirement villages present a viable, cost-effective solution in an otherwise challenging housing market, underscoring the need for continued support and planning to accommodate the growing ageing population.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
