Seniors housing for the non-home owner

An ageing population – it’s the catchphrase of the Western world and a phenomenon we are all experiencing. While we are grasping with forecast exponential demand for aged accommodation and services, both providers and policy makers will also need to understand the evolving population characteristics.

There is a large proportion of seniors who own their house outright, giving them the opportunity to release equity in their home to fund their retirement if needed. However, many older Australian households are asset rich and income poor, relying on pensions as their main income source. With a number of seniors renting (private and public), there is a growing group who have limited means to fund their retirement.

Our social housing system is constantly under strain with record wait times and high underutilisation. Nearly a third of public housing tenants are occupied by seniors and a large proportion are single, which is an inefficient use of a limited resource.

Similarly, the wider housing market continues to struggle with lack of supply, driving up private rental prices and urban sprawl. In addition, there is evidence indicating that majority of homes, including private and public housing homes, are not appropriate for ageing in place. The current system is unsustainable, unaffordable and is placing increasing pressure on the acute health and aged care sector.

While there are rental accommodation offerings for seniors, turnover in these villages is typically high, with some operators reporting average lengths of stay as low as three years. The high turnover stems from the availability and affordability of care and accommodation, with poorer seniors unable to access and fund both. As a result, we are seeing premature admissions into residential aged care and creating additional burdens for the already strained healthcare sector.

Eureka and Ingenia, who offer affordable rental accommodation to seniors, have embarked on strategies to address this changing paradigm. Ingenia have implemented the Care Assist program in their villages and Eureka has recently partnered with Blue Care to provide care to their residents. While these programs are in their infant stages, it highlights the innovation we are beginning to see in the sector.

While there is an opportunity for operators to develop service models that are tailored for financially disadvantaged seniors, even more importantly, the Government has an opportunity to work with a growing sector to develop a sustainable model for the future. 

This article was written by Amber Cartwright at Ansell Strategic, an associate sponsor of the National Retirement Living Summit 2016.