Retirement villages become the hottest address on the market as senior cost of living soars

Jul 18, 2023
Retirement villages are offering a much-needed solution for seniors grappling with financial strain. Source: Getty

Retirement villages may offer a small glimmer of hope for older Australians feeling the stress brought on by the housing affordability crisis plaguing the country.

According to the 2022 PwC and Property Council Retirement Census, retirement villages are becoming an incredibly affordable option for seniors.

The report shows that over the last 18 months to December, the average cost of a two-bedroom Independent Living Unit (ULI) in a retirement village increased by 6.6 per cent compared to the steep 26 per cent increase in national housing prices.

The report states that, overall, retirement village units are 48 per cent cheaper than the median house price found in the same suburb.

Retirement Living Council of Australia executive director Daniel Gannon says these results show how retirement villages can offer older Australians a profitable path to affordable living, particularly for those who may find it hard to get by with their fixed incomes and the increasing cost of living pressures.

“Retirement living communities offer a unique housing option that enhances wellbeing and lifespan for older Australians, and actually prevents the entry into aged care,” Gannon said.

“At a time when national housing affordability is eroding, and health care costs are also growing, the value proposition of retirement communities is strengthening.”

Though the cost of living pressure can be a big motivator to consider moving, many retirees may have reservations about giving up their homes and moving to a retirement village.

Some may fear losing their independence and being stuck in an uninspiring environment. But the good news is, many of those outdated homes are long gone.

The staid retirement homes of yesteryear have been put out to pasture, making room for a new generation of modern, vibrant, and socially engaging retirement villages specifically designed to cater to today’s active retirees who have no intentions of slowing down.

Other than helping ease the housing crisis, some seniors may also view the move to a retirement village as a necessary lifestyle shift, moving away from the responsibilities of maintaining a large family home and embracing a community of like-minded people.

Others may be motivated to make the move as a way of increasing social interaction and finding opportunities to forge new friendships and create fresh memories.

Whatever the reason, it’s important the carefully consider all aspects of your life before making a decision in order to ensure you continue to have a satisfying retirement experience.

To help you get a better understanding of whether a retirement village is the right choice for you, you can download a free copy of the Starts at 60Considering a Retirement Village: The Ultimate Checklist” for everything you need to know before you start your journey into retirement living.

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