Housing challenges spurred on by ageing population

The Albanese government’s Centre for Population 2023 Population Statement has flagged that the country’s population is beginning to age, presenting housing, care, and affordability challenges.

Retirement Living Council (RLC) executive director Daniel Gannon said that this is “more important than ever” as over 2 million people in Australia are over the age of 75, with that number set to increase to 3.4 million by 2040.

“This means there will be an additional 1.4 million people over 75 within the next two decades,” Mr Gannon said.

“These changes will have implications for the nation’s socioeconomic outlook, including increased demand for healthcare, social services, and aged care services.

“At the same time, the pressure on our housing markets continues to grow, as does the need for age-friendly infrastructure and appropriate housing options for this ageing cohort.”

The RLC’s report Better Housing for Better Health, outlined benefits for consumers and governments by addressing this issue.

“This report has found that retirement villages across the country save the Commonwealth government a billion dollars every year by delaying entry into aged care facilities through better-designed homes that lead to fewer trips, falls, and interactions with healthcare systems,” Mr Gannon said.

The RLC proposed that the government include retirement communities as a key delivery component of the Housing Australia Future Fund target to build 1.2 million homes by 2029.

“Beyond just the housing benefits, residents of retirement communities are 41 per cent happier, 15 per cent more physically active, and experience reduced levels of loneliness and depression,” Mr Gannon added.

In a statement issued by senator and acting treasurer at the time, Katy Gallagher, the government’s economic plan is about “ensuring Australians are beneficiaries not victims of the shifts shaping our economy”.

“Understanding the big trends and transitions in our population is vital to building an inclusive and dynamic labour force, laying the foundations for growth, and ensuring we can deliver policies and services to benefit all Australians,” Ms Gallagher said.

“The 2023 Population Statement helps us prepare for the changes and challenges ahead.”

According to Ms Gallagher, the statement has revealed the country’s population growth has been supported by higher net overseas migration post-COVID-19.

“Net overseas migration is expected to decline back to around pre-pandemic levels over the next couple of years and population growth is forecast to decline over the medium term, as our population continues to age,” she said.

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Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

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