Australia is facing a growing shortage of retirement villages. With an ageing population and rising demand, the country simply isn’t building enough independent living units. If the gap isn’t addressed soon, tens of thousands of older Australians could miss out on vital housing that promotes healthier, more active lifestyles.
The Growing Need for Retirement Villages
At the recent Future of Retirement Living roundtable in Canberra, Nathan Cockerill, CEO of Keyton, warned that Australia is not building enough retirement villages to meet the surging demand., reports Illawarramercury. With over 75s comprising a large portion of the population, the need for retirement housing is only expected to grow. In fact, there are currently around two million Australians over 75, and this number will rise to 3.7 million by 2040.
What’s more concerning is that 13% of people over 75 are actively looking to move into retirement villages, meaning that within the next five years, Australia will need to build 60,000 new independent living units (ILUs) just to meet this demand. Yet, the planned pipeline only accounts for 18,000 new units, creating a worrying shortfall of nearly 40,000 homes.
Why the Gap Exists: Challenges in the Sector
So, why aren’t we building enough? The retirement living sector faces several challenges. One of the biggest is the lack of available land. Residential developers, who are generally more profitable, tend to outbid retirement living developers for land that could be used for such communities. Developers of retirement villages also face the additional cost of building necessary community facilities, which residential projects don’t require. As a result, developers are often left with fewer land options and must move to less desirable areas, which can deter seniors from moving in.
Additionally, there’s a lack of understanding of the sector’s benefits among both the public and government. Retirement village residents are happier, healthier, and more physically active than their peers, but these benefits often go unnoticed in the wider conversation. Residents of retirement communities have a 41% higher satisfaction rate and are 58% more likely to engage in physical activity compared to those living independently. Even more impressively, they are 20% less likely to require hospitalization after just nine months of living in one of these communities.
The Future: What Needs to Change
The growing demand for retirement living units isn’t just an issue for the ageing population; it’s an issue for the entire healthcare system. With fewer hospital admissions and better health outcomes, retirement communities reduce the pressure on hospitals, leading to savings and a healthier society overall. But to achieve these benefits, more must be done to create space for retirement living developments.
Keyton’s Nathan Cockerill emphasized that focusing on building retirement communities closer to where seniors already live is critical. Many people selling their homes in city centers want to remain within a 5-10 km radius of their previous homes for proximity to family, friends, and essential services like their local doctor. Unfortunately, due to land availability, developers are forced to look at outer suburban locations, which may not be as desirable for retirees.
To meet demand, more land needs to be designated for retirement communities, and government policies must better support the sector. A partnership between residential and retirement developers could be a step in the right direction, ensuring that communities are not only plentiful but also accessible.
Closing the Gap
Australia’s retirement village gap is a ticking time bomb, and without swift intervention, the shortfall will only worsen. With an ageing population and increased demand for retirement living, it’s clear that we need to start planning now. The solution lies in smarter land use, better support for developers, and greater recognition of the significant role retirement communities play in enhancing the health and well-being of older Australians.
By investing in this sector now, we can ensure that future generations of seniors have the opportunity to live healthier, more fulfilling lives, free from the worry of inadequate housing options. If we act quickly, Australia can turn this challenge into an opportunity to provide better futures for its older citizens.
