In February, Retirement Living Council Executive Director Daniel Gannon emphasised that between now and 2030, 67,000 retirement homes are needed to meet current demand from older Australians – yet only 18,000 are planned.
He noted that these homes would account for 6% of the national 1.2 million new homes target, highlighting retirement communities’ key role in addressing Australia’s housing supply challenge.
However, last Thursday, the 2024 PwC/Property Council Retirement Living Census revealed that between 2025 and 2030, just over 12,000 additional units are expected to be built – 7,200 units in the next three years and 5,000 in the subsequent three years.
Funminiyi Oduko, Partner at PwC Australia said: "The Census reaffirms the industry's attractiveness, underscored by lows vacancy rates and relatively high levels of resident satisfaction. Yet, meeting demand and keeping up with evolving retiree expectations remain crucial. The development pipeline is expanding. However, supply side challenges like planning approval delays, limited land supply, and rising construction costs are still present."
The 2024 Census, which featured a record survey participation of 93 operators, 1,070 villages and 98,000 units, found independent living units were priced at 59% of the suburb's median house price, up from 57% 12 months earlier and the vacancy rate had fallen one percentage point to 4%.
"In the middle of a national housing crisis, retirement living is one of the rare sectors still providing affordable, secure housing for our rapidly ageing population," said Daniel.
"But more than that, the Census has revealed retirement villages are no longer just about housing – they’re becoming frontline providers of care and support services. Almost 80 per cent of villages now offer regulated home care services (either themselves or in partnership with a third party provider), giving older Australians the chance to live independently for longer while receiving the support they need, when they need it.
"That means, as people age in place for longer, there must be a targeted and coordinated effort by all levels of government to tear down red tape so demand can be met. By 2040, the over-75 population will surge from two million to 3.7 million – an 85 per cent increase.
"While the Census highlights the supply pipeline is growing, it’s still not fast enough, because vacancy is below four per cent and waitlists are growing. We know operators stand ready to invest, but without urgent action to unlock more supply, Australia risks a serious shortfall at a time when retirement villages are more vital than ever.”
