In 2016, the census stated residents stayed in a retirement village on average for seven years.
The 2023 PwC/Property Council Retirement Census, released in Aveo’s The Clayfield retirement village, in Brisbane, last Tuesday, stated the average stay was nine years.
Equally, the number of retirement villages providing home care has increased substantially. 61% of existing villages compared to 46% the previous year.
Does this indicate that with the increase in home care packages from ~50,000 in 2017 to ~250,000 packages today, that home care is supporting retirement village residents out of residential aged care longer?
The Census tells us the average price of a two-bedroom independent living unit average remains highly attractive, despite rising 8.3% from $516,000 to $559,000. This is 57% of the average median house price. In 2016, it was 67% of the median house price.
The census states vacancy levels are just 5%, which reflects the demand since COVID-19. However, there are serious concerns for the sector.
The average national age of villages is now 29 years. Significant investment is required to keep them market acceptable in appeal.
Between now and 2030, the retirement industry requires 67,000 homes to be built to meet existing levels of demand from older Australians. Only 18,000 are currently planned.
"As our population ages, the demand for high-quality, accessible retirement living options has never been more critical. However, the sector is facing a unique set of challenges and opportunities. From rising construction costs and limited land supply to evolving preferences of the senior population, the landscape of retirement living is rapidly changing while affordability remains a key component of the retirement living sector in comparison to the residential housing market," said Meredith Chester and Funminiyi Oduko, Partner Corporate Value Advisory, PwC, who compiled the Census.
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