How ‘grey army’ can pull Sydney out of housing crisis

It’s been billed as the ‘secret weapon’ to help fight the state’s housing crisis.

NSW’s grey army has been billed as a “secret weapon” in the fight against the state’s housing crisis amid calls to stop those selling the family home losing their pension.

A new report from the Retirement Living Council, a subsidiary of The Property Council of Australia, has estimated more than 473,000 NSW retirees aged over 75 are living in oversized homes with at least one bedroom left empty.

But with many risking their own health to stay for fear of losing their pension to means testing if they sell, the powerful industry group has revealed huge economic benefits to enticing them to sell.

Retirees have been called the “secret weapon” to the housing crisis.

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Retirement Living Council executive director Daniel Gannon said many Australians were faced with choosing to lose part or all of their pension if they wanted to downsize.

“Retirement living could be a secret weapon for the government looking to inject thousands upon thousands of new homes into the market,” Mr Gannon said.

“At a time when Australia is facing a chronic housing shortage … now is the time to take a serious look at eligibility for financial benefits. Some of these must include the home equity scheme and the age pension asset test.”

The Better Housing for Better Health report released today revealed 49,000 additional retirement living dwellings could reduce Australia’s housing shortage by a massive 67 per cent.

Retirement Living Council executive director Daniel Gannon.

“This sector does have incredible potential to reduce the housing supply gap by almost 70 per cent which means that local and state government based planning authorities need to better understand the opportunity this housing type presents,” Mr Gannon said.

The report also found retirement community residents were 15 per cent more active than those outside of them, and their resulting better health meant 14,000 fewer hospitalisations each year.

They were also found to be five times more engaged in social activities than non-residents, reducing incidences of loneliness and leading to them being 41 per cent happier.

This makes residents less likely to enter taxpayer funded aged care, and with a two-year delay for the 12.6 per cent of Australians aged over 75 currently living in retirement villages it translates to a $1bn saving for the government.

Sandra and John Purkis were initially planning to downsize into a private villa before they made the move into retirement living. Picture: Julian Andrews

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When John and Sandra Purkis decided to downsize from the four bedroom Baulkham Hills home they owned for 26 years, they were initially keen on a private villa with retirement living a longer tern plan.

However, Mr Purkis said what was available was not appropriate and often run down and needing work.

Eventually they bought a three-bedroom apartment in Aveo’s Bella Vista Haven retirement living community in 2021 and haven’t looked back.

“We love it, we really do and have made some lovely friends,” Mrs Purkis said.

“We are also glad we made the move together. If anything ever happens to one of us, we would feel more comfortable in this environment.”

Mr Purkis said Bella Vista Haven opened around five years ago and was at full capacity.

“It’s a completely new environment, you can live your own life or join in various activities around the village,” he said.

The couple say they have made lovely friends and haven’t looked back after their move. Picture: Julian Andrews

“I didn’t have to twist John’s arm,” Mrs Purkis added. “This place has such a warm, friendly feeling and we love the added extras like the cafe and gym.”

Keyton Retirement Villages chief executive officer Nathan Cockerill seconded calls for more incentives for retirees, highlighting “inhibiting factors” such as pension means testing and confusion between retirement living and aged care.

“There’s a stigma around it but when people come into retirement living, it’s a social decision to be more connected,” he said.

“They’re social life is a lot more active than it was in their own homes. At Keyton we have wellbeing programs and allied health professionals helping make people more active. The thing I hear most from people is ‘I wish I did this earlier’.”

Keyton Retirement Villages chief executive officer Nathan Cockerill said a big challenge was finding available land.

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Keyton has full occupancy across its 76 retirement living communities with demand increasing in the past two years off the back of Covid lockdowns.

Mr Cockerill said while there were some new developments in the pipeline, the challenge was finding suitable land.

“Building in outer suburban areas makes it hard to attract retirees,” he said.

“They want to want to be connected to the community they are from.”

Mr Gannon said three quarters of older Australians were living in homes either too big or risky for their ageing needs.

“Their transition into the retirement community and out of a family home serves multiple purposes,” he said.

“It provides them with purpose designed accommodation that minimises trips and falls but it also frees up housing stock for singles couples and young and growing families which has the affect of supply into a market that is currently under duress.”

He added that government policy changes for retirees could also put the brakes on soaring house prices.

The Retirement Living Council report found that in Metropolitan Sydney, the cost of the average two bedroom unit in a retirement living community is 64 per cent lower than the median house price.

The report included projections that by 2040 almost 10 per cent of Australians will be aged over 75, and has called for more planning support to build new retirement residences with just 18,000 currently in planning nationwide and most of those already built around the country closing on full capacity.