Waitlists for retirement villages have been blowing out across NSW, leaving would-be downsizers trapped in oversized homes that could otherwise be sold to growing families.
Alarming figures have revealed a shortage of spaces within retirement villages has created a major chokepoint within the wider housing market, with nearly 7800 households currently on village waitlists in NSW alone.
A total 26,825 retirees were reported to be on waitlists for retirement villages nationally, and NSW accounted for 29 per cent of the pent-up demand, according to the figures from PwC and Retirement Living Australia.
7,800 homes could be injected into the housing stock if would-be downsizers were able to get off retirement home waitlists. Picture: Gaye Gerard
Retirement Living Council (RLC) executive director Daniel Gannon said the aged care system is being overwhelmed but that the impact of waitlists doesn’t stop at retirement living.
“Almost 27,000 waitlist registrations tell you everything you need to know – older Australians want retirement communities, but the pipeline has hit a brick wall,” Mr Gannon said.
“Every older Australian who moves into a retirement village frees up a home for another family.
“It creates a chain reaction that helps ease pressure right across the housing market, and offers connection, security and access to care and support when residents need it.”
NSW retiree Sue Bookallil said downsizing was difficult. Picture: Supplied
Retiree Sue Bookallil is moving into a Central Coast lifestyle village in November after 28 years in the three-bedroom “love nest” she built with her late husband, Rob.
She found downsizing “daunting” and said that the wait to get a spot in a village was long.
“It’s a reasonably extensive waitlist because once somebody does vacate, then the family has got to work out what they’re going to do, clean it out, agree on a price and a renovation, and all that sort of stuff takes time,” Ms Bookallil said.
The Australian Institute of Health and Welfare estimated the over 85 population will triple in the next 40 years.
Reducing waitlists for retirement homes will help both the public health and housing sectors.
According to figures from RLC, the 249,000 residents in retirement homes are 20 per cent less likely to require hospitalisation after nine months.
This reduces aged care spending by $945 million each year, making appropriate retirement living also critical for the healthcare system.
Retirement living becomes a clear ‘two birds, one stone’ solution but Mr Gannon said the government can’t ease pressure in the housing market if new projects aren’t approved.
“Australia is staring down a housing crisis, an ageing population, overflowing hospitals and an aged care system stretched to breaking point, yet we’re still putting hurdles in front of one of the solutions,” Mr Gannon said.
“The question for governments is simple – are they prepared to get out of the way and let the sector build?”
Tony and Gayle Henwood, with grandchildren Brady, Astrid and Lennox, outside their new home in Halycon Gables.
Gayle and Tony Henwood moved into a lifestyle village in northwest Sydney after selling their five bedroom house to a young family a couple of months ago.
A key issue with “right sizing” is often that empty-nesters like Ms Bookallil and the Henwoods don’t want to leave their communities and homes where they’ve created treasured memories.
“(Downsizing) is quite a stressful situation,” Ms Henwood said.
“Getting rid of things that, you know, you thought were really important to you that really weren’t and also saying goodbye to your house, I think that’s hard.
“The decision was a lot easier once we wrote it down … (and realised) everything that we didn’t want in life was attached to the house,” she said.
Ms Henwood said they were happy the house had gone to someone with extended family in the area who could turn their house into another “family hub”.
“It was too big for us and it’s nice that a young family has moved in there, so now their children can grow up in it, and they can have all those special events that we had,” she said.
Retirement villages can help keep retirees social and active for longer.
Ken Franklin is the Halcyon Gables project director where Mr and Ms Henwood live and said many people are right sizing into homes that better suit their lifestyles.
“Importantly, many of these moves also return a larger family home to the market, helping increase housing availability for younger families across Sydney,” Mr Franklin said.
Valuations partner Meredith Chester from accounting firm PwC Australia said retirees’ expectations are expanding to include improved choice, care and community connection.
“This is an opportunity for the industry to respond … the challenge will be to meet evolving resident demands while continuing to balance affordability, service quality, and long-term sustainability,” Ms Chester said.