Fresh data from the 2023 PwC-Property Council Retirement Census has revealed that retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional housing market.
The census shows that a two-bedroom unit in a retirement village is, on average, 43 per cent cheaper than the median house price in the same postcode.
The average cost for a retirement village unit stands at $559,000, compared to $986,000 for median house prices in the same areas.
Daniel Gannon, Executive Director of the Retirement Living Council (RLC), emphasised the crucial role retirement villages play in addressing housing affordability.
“Retirement villages are an affordable housing solution available to older Australians in an otherwise unaffordable housing market,” Gannon stated.
The census also highlighted that retirement villages are operating at near-full capacity, with only a 5 per cent vacancy rate.
This high occupancy rate, coupled with a projected increase in the over-75 population from 2 million to 3.4 million by 2040, underscores the urgent need for more age-friendly housing options.
Tony Randello, CEO of Aveo, stressed the importance of planning reforms to meet the growing demand.
“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,” Randello said.
PwC Australia partners Meredith Chester and Funminiyi Oduko highlighted the challenges and opportunities facing the sector.
Chester noted the critical demand for high-quality, accessible retirement living options, while Oduko pointed out the sector’s evolving landscape, including rising construction costs and changing preferences of the aging population.
The data also revealed a high satisfaction rate among retirement village residents, with a national net promoter score of +44.
As the housing affordability crisis continues to impact Australians of all ages, retirement villages are emerging as a viable solution for older Australians, while potentially freeing up larger homes for younger buyers in the process.
