Retirement sector warns state policy risks retiree housing crisis

Victoria’s wait list for retirement village residences has ballooned out to almost 600, even as retirees carve out their own space to spend their golden years in high-rise havens.

But the retirement living development sector has warned state government policies and regulatory changes are risking the state’s future housing supply as well as potentially the health of older Victorians.

It comes as the architects and experts behind the city’s apartment towers have revealed developers are working to turn them into forever homes for downsizers, with some even suggesting we might start to see more scenarios where retirees stay put and bring live-in help to them, like in the Kelsey Grammar TV show Frasier.

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Waitlist data from the latest PwC and Retirement Living Council Census shows older Melburnians are desperate for more space, with 334 on a waiting list for a two-bedroom residence in retirement villages, accounting for 57 per cent of the 582 total on the wait list.

There are a further 207 seeking one with three bedrooms, about 36 per cent of the total.

About 7 per cent of the total was made up of those seeking assisted living or a one-bedroom unit.

Retirement Living Council executive director Daniel Gannon said their census showed Victorian downsizers didn’t want to give up having space for family and friends.

“Victoria’s challenge is not a lack of demand – it’s a shortage of the right housing options for older Australians, and current policy settings are making that harder to address,” Mr Gannon said.

Victoria’s Retirement Living Waitlist Broken Down

Melbourne

Assisted living: 18 – 3%

One-bedroom: 23 – 4%

Two-bedroom: 334 – 57%

Three-plus bedrooms: 207 – 36%

Total: 582

Regional Victoria

Assisted living: 6 – 2%

One-bedroom: 16 – 6%

Two-bedroom: 148 – 53%

Three-plus bedrooms: 207 – 40%

Total: 281

Source: Retirement Living Council, PwC

Noting the state had about 2750 new retirement living homes slated to be built by 2031, he warned the state government still needed to minimise planning and regulatory burdens facing the sector to ensure they were built — and put to good use, which would then free up other homes for younger families.

In May, new regulations came into effect for the retirement village sector, requiring standardised forms be used, greater fairness and a range of protections — which while well received by the sector, had been provided with less than a month to implement the changes.

“Older Victorians cannot live in a pipeline,” Mr Gannon said.

“The opportunity now is to turn those 2750 forecast homes into real communities. That will require planning, regulatory and investment settings that support delivery so older Victorians have genuine housing choice.”

He said it was important the industry was supported in making these homes available, as their absence would leave older Victorians in family homes, often contending with stairs, difficulty accessing their bathroom and facing isolation — all of which could turn into health issues.

Mr Gannon added that more providers were looking at multi-level buildings in more central locations across Melbourne, and that these were expected to account for about 80 per cent of new supply by 2029.

However, many retirees aren’t waiting for them to be built.

Charter Keck Cramer national executive director Richard Temlett said there was a considerable share of Victorians who did not like the idea of deferred management fees eating into the inheritance they might leave for their kids, who were instead turning to apartments.

As a result, developers have been producing skyhomes with safety and security measures, often including a 24-hour concierge in higher-end buildings, and even wellness spaces with features including gyms, cold plunge pools and saunas, to help residents potentially live better.

Asked if he was expecting to see scenarios where retirees skipped the village entirely and just arranged for care to visit or even live with them later in life, like in TV’s Frasier, Mr Temlett said it was very possible.

“Down the line, it may well be that yes, that is the case. Probably, some people already do it.”

Architectural firm Bates Smart director Karen Wong said well-designed apartments could suit everyone from families with prams to retirees, and potentially help people “stay there as they get older”.

But the real advantage for older Victorians was it would help keep them as part of a diverse community, and connected with people at various stages of life.

“You cross paths with your neighbours … and that will help you feel connected,” Ms Wong said.

She added that in some instances, apartment complexes allowed older Victorians to downsize closer to family in suburbs around Brunswick and Coburg, where many working professional families had begun to live.

“And, maybe, you don’t have to drive — you can walk down the road to the cafe or take the tram to the National Gallery of Victoria,” she said.

“And that independence helps you to stay active and maintain your wellbeing.”

Newer buildings are also required to following the National Construction Code, which includes accessibility minimum standards that provides wider hallways, better thought-out doorways and even reinforced bathroom walls where handrails can be added.

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