The five big trends expected to hit retirement living

The five big trends expected to hit retirement living in 2024

Australia’s over-50s housing industry enters 2024 in a position of relative strength, with buoyant house prices and positive consumer sentiment. However, several significant challenges are shaping the industry. The immigration crisis, inflation, ongoing impacts of COVID-19, and the pressing issue of climate change are all influencing how retirement housing is delivered and perceived.

The Keyton Retirement Living Lifestyle Report highlights that 59% of Aussie over-55s are more concerned about the cost of living now than they were in 2021. Despite these concerns, over half of retirees in retirement villages feel less impacted by these costs, showcasing the relative security these living arrangements can offer​.

The Australia Senior Living Market size is estimated at USD 6.03 billion in 2024 and is expected to reach USD 8.92 billion by 2029. This growth is driven by an aging population and the increasing demand for senior housing. In response, real estate developers are focusing on constructing standalone senior living projects or dedicated towers with necessary amenities​.

Below are the key trends expected to shape the retirement housing industry in 2024:

 

1) More Secure Over-50s Rentals

As property prices continue to rise and mortgage sizes balloon, more individuals within the over-50s housing market are entering retirement as renters, reflecting significant retirement trends in 2024. The rising cost of homeownership, coupled with inflation and economic uncertainties, has driven many over-50s to seek secure, long-term rental options that provide stability and peace of mind.

Rising Rental Demand

The demand for secure rental options among the over-50s demographic is increasing due to various economic pressures. Inflation and housing market pressures have made homeownership less attainable for many older Australians. As a result, there is a growing trend towards renting, which offers more flexibility and fewer financial burdens compared to owning a home.

Industry Response

Companies like Calyptus and Eureka are expanding their offerings to meet this growing demand. Calyptus, for example, is focused on creating secure, long-term rental options for over-50s in suburban homes. This approach addresses the need for stability and community among older renters​. Similarly, Eureka has expanded its portfolio of pensioner-friendly rental villages, providing affordable and secure housing options for older Australians.

Continued Growth

This trend is expected to continue growing in 2024, with a clearer industry focus on targeting specific over-50s rental markets. Operators are increasingly tailoring their offerings to meet the diverse needs of this demographic, ranging from affordable rental options to more aspirational living arrangements. For instance, Stockland is expected to join Mirvac in the aspirational rentals space, offering high-quality rental properties designed to appeal to downsizers looking for lifestyle-rich urban areas.

Secure Leases

The underlying value proposition of these rental options is security. The 'build-to-rent' industry is emphasizing the importance of secure leases, with little chance of eviction or significant rent increases. This security is particularly appealing to over-50s who may be seeking a stable living environment without the financial risks associated with homeownership.

Overall, the rise in secure over-50s rentals is a significant trend in the retirement housing industry for 2024. It reflects broader economic trends and the need for flexible, stable housing solutions for older Australians.

 

2) A Clearer Pathway to Care and More Luxury Care

The landscape of retirement living is increasingly diverging between independent living and care-focused housing. This shift is driven by the growing demand for comprehensive care services and the rising expectations for luxury and quality in retirement accommodations.

Increasing Divergence

There is a clear trend towards differentiation within the retirement housing industry, catering to two distinct needs: independent, active lifestyles and care-focused accommodations. This divergence is becoming more pronounced as operators strive to meet the specific requirements of older Australians who are either fully independent or in need of varying levels of care​.

Industry Innovations

Companies like Aveo and Ryman are at the forefront of introducing new care models and pricing options. Aveo continues to innovate with pricing strategies that facilitate seamless transitions from independent living to various levels of care within the same community. This approach not only simplifies the process for residents but also provides peace of mind knowing that additional care is available if needed.

Ryman is expanding its comprehensive care models, particularly in Victoria, offering a continuum of care that includes everything from independent living to assisted living and full-time nursing care. This 'one-stop-shop' model ensures that residents can remain within the same community even as their care needs evolve, promoting stability and continuity of care​.

Luxury Care Facilities

The demand for luxury care facilities is on the rise, driven by the increasing affluence of the aging population and the desire for high-quality living environments. These facilities often include premium amenities such as gourmet dining, wellness centers, and personalized care services. The growth of luxury care options is also a response to some of the criticisms highlighted by the Aged Care Royal Commission, emphasizing the need for higher standards and better living conditions in care facilities.

In-House Home Care Services

Another notable trend is the expansion of in-house home care services offered by retirement village operators. This allows residents to receive the necessary care within the comfort of their own homes without having to move to a separate aged care facility. This trend is expected to continue growing as it addresses the preference of many seniors to age in place while receiving professional care.

Overall, the retirement housing industry is evolving to provide clearer pathways to care and more luxurious living options, catering to the diverse needs and expectations of the aging population in 2024. This shift not only enhances the quality of life for residents but also underscores the industry's commitment to meeting the complex and changing demands of senior living.

 

3) ‘Retirement’ Housing No More?

The concept of 'retirement housing' is undergoing a significant transformation. The traditional notion of retirement communities exclusively for leisure and relaxation is evolving to meet the needs of an active and often still-working older population. This shift is driven by several factors, including remote working trends, financial necessity, and changing lifestyle preferences.

Integration of Workspaces

One of the most notable trends is the integration of workspaces within retirement communities. The COVID-19 pandemic has accelerated the remote working trend, and many over-50s are now seeking housing options that accommodate their need to work from home. A recent survey found that Baby Boomers increasingly seek retirement village dwellings with integrated workspaces. This reflects a shift driven by remote work trends and the financial impacts of inflation.

Changing Marketing Terms

The shift in lifestyle needs is also influencing the way retirement housing is marketed. Traditional terms like 'retirement housing' are being replaced with 'lifestyle' or 'downsizer-friendly' housing. This rebranding highlights the active and engaged lifestyles that many older Australians lead. Housing operators are emphasizing the versatility and modern amenities of their properties to appeal to a broader audience that includes working professionals and active retirees.

Financial Products for Downsizers

To support this shift, there has been an introduction of new financial products aimed at downsizers. For instance, Land Lease Home Loans offer finance options that allow over-50s to transition into smaller, more manageable properties while maintaining their financial stability. These products are designed to cater to the unique financial needs of older Australians, providing flexibility and support as they navigate the downsizing process.

Examples of Industry Response

Companies like RSL Lifecare are adapting to these changes by incorporating features that support an active and working lifestyle. Their recent survey highlights the demand for retirement village dwellings that provide both living and working spaces. This adaptation reflects a broader industry trend towards creating housing solutions that accommodate the diverse needs of the aging population.

Overall, the concept of 'retirement' housing is becoming more flexible and inclusive, catering to the evolving needs of older Australians. This trend is set to continue in 2024, redefining what it means to live in a retirement community.

 

4) Environmentally Friendly Communities on the Rise

Environmental sustainability is increasingly becoming a key priority for retirement living communities. As the global focus on climate change intensifies, retirement village operators are adopting green initiatives to meet the rising demand for environmentally friendly living options and to comply with new regulatory measures.

Pressure to Prove Green Credentials

Retirement living companies, especially those exposed to public capital markets, are under significant pressure to demonstrate their commitment to sustainability. This demand is driven by both consumers and investors who prioritize environmental responsibility. Companies are responding by implementing various green technologies and practices to reduce their environmental footprint and enhance the appeal of their communities​.

Adoption of Green Technologies

Early adopters of green technologies are leading the way in creating more sustainable living environments. Features such as solar power, communal electric cars, car charging stations, and water conservation measures are becoming standard in many retirement communities. For instance, some communities are offering residents free or discounted electricity generated from solar panels, significantly reducing utility costs and promoting energy independence.

Regulatory Measures

Governments are also playing a crucial role in promoting environmental sustainability within retirement communities. States like Victoria and New South Wales are introducing regulatory measures to encourage the use of renewable energy and other green technologies in retirement housing. The Victorian Essential Services Commission has proposed a price cap on embedded network customers, including those in retirement communities, to ensure fair pricing and support the adoption of solar energy.

Industry Examples

Several retirement living operators are setting benchmarks in sustainability. For example, some communities are incorporating communal electric vehicles for resident use, reducing the reliance on personal cars and decreasing overall carbon emissions. Water conservation initiatives, such as rainwater harvesting and efficient irrigation systems, are also being implemented to manage resources more sustainably.

Benefits for Residents

The shift towards environmentally friendly communities offers numerous benefits for residents. Beyond the cost savings from reduced utility bills, these green initiatives contribute to healthier living environments and a greater sense of community responsibility. Residents are increasingly drawn to retirement villages that prioritize sustainability, recognizing the long-term benefits for both their well-being and the planet.

In conclusion, the rise of environmentally friendly communities in the retirement housing sector reflects a broader societal commitment to sustainability. As regulatory pressures and consumer demand continue to grow, retirement living operators are likely to expand their green initiatives, making environmentally conscious living an integral part of the retirement experience in 2024.

 

5) More Multi-Generational Communities

The concept of multi-generational housing is gaining traction in the retirement living sector. This trend is driven by the need to support closer family bonds, accommodate live-in carers, and address housing challenges brought about by the immigration crisis. Multi-generational communities offer a holistic living environment where different generations can coexist, support each other, and foster a sense of extended family.

Family Bonds and Carer Support

With the increasing importance of family bonds, retirement communities are adapting to allow for more integrated living arrangements. This includes providing accommodations for live-in carers, adult children, or other family members who can support elderly residents. For example, IRT’s new retirement village south of Sydney features live-in carer accommodation. This setup includes separate entrances and shared living spaces, allowing carers to live on-site while maintaining some independence.

Immigration Crisis and Housing Solutions

The immigration crisis has heightened the need for flexible housing solutions that can accommodate larger family units and provide support structures for newly arrived migrants. Multi-generational communities are well-suited to meet these needs by offering housing options that can adapt to the varied requirements of different family members, from young children to elderly grandparents.

Industry Examples

Several retirement living operators are embracing this trend. Aura Holdings, for example, has policies that allow carers to live with residents in their southeast Queensland retirement villages. This approach not only supports the immediate needs of elderly residents but also fosters a more inclusive and supportive community environment. These multi-generational setups are becoming increasingly popular as they provide practical and emotional benefits to all members involved​.

Expected Expansions in 2024

This concept is expected to expand further in 2024, with more retirement communities incorporating multi-generational living options. Operators are designing new developments with flexible floor plans and communal areas that cater to the needs of all generations. This includes features like shared kitchens, adaptable living spaces, and communal gardens, which encourage interaction and mutual support among residents of different ages​.

Benefits for Residents

Multi-generational communities offer numerous benefits, including enhanced social connections, better mental health, and increased security. Older residents can enjoy the company and support of younger family members, while younger generations benefit from the wisdom and experience of their elders. This living arrangement also provides practical advantages, such as shared responsibilities and reduced caregiving burdens, making it an attractive option for many families.

In conclusion, the rise of multi-generational communities is a significant trend in the retirement housing sector for 2024. It reflects broader societal shifts towards family-oriented living and provides practical solutions to housing and caregiving challenges. As more operators adopt this model, we can expect to see a greater emphasis on creating inclusive and supportive environments that cater to the diverse needs of all family members.

 

In addition to these major trends, two other significant developments are shaping the future of retirement living in 2024: the rising participation in paid or volunteer work among retirees and the expansion of social connections and activities within retirement communities. These trends reflect a broader commitment to active, engaged, and fulfilling lifestyles for older Australians.

 

6) Rising Participation in Paid or Volunteer Work

As financial pressures increase and the desire for meaningful engagement continues into older age, more over-55s are participating in paid or volunteer work. This trend highlights the evolving nature of retirement, where staying active and contributing to the community are becoming integral aspects of retired life.

Financial Pressures and Work Participation

Inflation and the rising cost of living are significant factors driving older Australians back into the workforce or towards volunteer roles. According to the Keyton Retirement Living Lifestyle Report, 30% of Aussie over-55s are still engaged in some form of paid or volunteer work. This participation helps mitigate financial pressures and provides additional income to manage everyday expenses​.

Benefits of Staying Active

Engaging in paid or volunteer work offers numerous benefits beyond financial stability. It enhances overall well-being by providing a sense of purpose, fostering social connections, and keeping the mind and body active. The report indicates that retirees who are active in work or volunteer roles often rate their overall well-being higher than those who are not engaged in any form of work. Specifically, 46% of those participating in work rate their well-being as excellent or very good, compared to 40% of those who are not.

Industry Response

Retirement living communities are recognizing this trend and are increasingly providing opportunities for residents to engage in work or volunteer activities. Some communities offer on-site roles or partnerships with local organizations to facilitate volunteer work. This not only benefits the residents but also strengthens the community by integrating valuable skills and experiences that older adults bring.

Examples of Volunteer and Work Opportunities

Retirement villages often organize community events, charity drives, and social programs where residents can volunteer. Additionally, some residents take up part-time jobs within the community, such as working in the community garden, assisting in the library, or participating in mentorship programs for younger residents. These roles provide structure and routine, contributing to a fulfilling retirement lifestyle​.

Expanding Opportunities in 2024

The trend of rising participation in paid or volunteer work is expected to continue growing in 2024. Retirement communities are likely to expand their programs to include more diverse and flexible opportunities that cater to the varying interests and capabilities of their residents. This could include remote work options, skill-sharing workshops, and collaborations with local businesses and non-profits to create meaningful roles for older adults.

In conclusion, the increasing participation of over-55s in paid or volunteer work reflects the changing dynamics of retirement. It highlights the importance of staying active and engaged, both for financial reasons and for overall well-being. As this trend grows, retirement communities will continue to innovate and offer more opportunities for residents to contribute meaningfully to their communities and maintain a vibrant, fulfilling lifestyle.

 

7) Expanding Social Connections and Activities

Social connections and engaging activities are fundamental to the well-being and happiness of retirees. Recognizing this, retirement communities are increasingly focusing on providing a wide range of social and recreational activities that foster a sense of community and improve the quality of life for their residents.

Importance of Social Connections

Studies have consistently shown that strong social connections are crucial for mental and physical health, particularly for older adults. The Keyton Retirement Living Lifestyle Report highlights that 57% of retirees living in retirement villages rate their level of social connection as excellent or very good, which is significantly higher than those not living in such communities​. This sense of connection is linked to lower levels of depression, improved cognitive function, and a greater sense of purpose and happiness.

Community Activities

Retirement communities are expanding their offerings to include a variety of social and recreational activities. These activities range from group fitness classes, hobby clubs, and arts and crafts workshops to social events like movie nights, community dinners, and outings to local attractions. By providing diverse and engaging activities, communities cater to a wide range of interests and abilities, ensuring that all residents have opportunities to connect and participate.

Examples of Activities

Some retirement villages are introducing innovative programs to enhance social interaction. For instance, communal gardens where residents can work together on gardening projects, or tech clubs that help older adults stay connected through digital means. Additionally, many communities organize volunteer opportunities, allowing residents to contribute to local causes and build relationships both within and outside the community.

Embracing Technology

Technology is playing a significant role in expanding social connections. Many retirement communities are leveraging digital platforms to facilitate virtual social gatherings, educational webinars, and fitness classes. These virtual interactions have become especially important in maintaining social ties during times when in-person gatherings may be limited, such as during the COVID-19 pandemic.

Positive Impact on Well-being

Engaging in social activities and building connections has a profound impact on the overall well-being of retirees. Residents who participate in social activities report higher levels of satisfaction and happiness. The Keyton report notes that 80% of residents feel they belong in their community, and 69% say their social life has improved since moving into a retirement village​. This improvement in social life is crucial for combating loneliness and enhancing mental health.

Future Trends

Looking forward to 2024, retirement communities are expected to continue expanding and diversifying their activity offerings. There will likely be an increased focus on creating inclusive environments that encourage participation from all residents, regardless of their physical or cognitive abilities. This could include adaptive sports programs, intergenerational activities that involve younger family members, and more personalized activity plans that cater to individual interests and needs.

In conclusion, expanding social connections and activities is a vital trend in the retirement housing industry. By fostering a vibrant, inclusive community environment, retirement villages can significantly enhance the quality of life for their residents, promoting better health, happiness, and a stronger sense of belonging.

 

Conclusion

Staying informed about the latest trends and developments in the over-50s housing industry is crucial as we move into 2024. The retirement housing sector is evolving rapidly, driven by economic pressures, changing lifestyle preferences, and a heightened focus on sustainability and community.

Secure over-50s rentals are becoming more prevalent, offering stability and flexibility in response to rising property prices and inflation. The distinction between independent living and care-focused housing continues to grow, with an increasing emphasis on luxury care and comprehensive in-house services. The concept of 'retirement' housing is shifting to accommodate active, working lifestyles, and new marketing terms reflect this evolution.

Environmental sustainability is also at the forefront, with retirement communities adopting green technologies and practices to meet regulatory demands and consumer expectations. Multi-generational housing solutions are addressing the need for closer family bonds and support structures, while participation in paid or volunteer work among retirees is on the rise, enhancing both financial stability and personal well-being. Lastly, expanding social connections and activities within retirement communities are proving essential for improving the quality of life and fostering a strong sense of belonging among residents.

By understanding and adapting to these trends, retirement communities can better serve their residents and continue to thrive in a dynamic and ever-changing landscape. Staying updated on these developments is not only beneficial for industry professionals but also for retirees seeking the best possible living arrangements. Subscribe to Downsizing.com.au’s newsletter to keep up-to-date with industry changes and explore a wide range of housing options tailored to your needs​.

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Frequently Asked Questions

What are the expected retirement trends for the over-50s housing industry in 2024?

In 2024, the over-50s housing industry is expected to be shaped by several key trends:

• More secure rentals: Rising property prices and economic pressures are driving more over-50s to opt for secure, long-term rental options.

• A clearer pathway to care: Retirement villages are offering more integrated care options and luxury facilities.

• Environmental sustainability: Communities are adopting green technologies like solar power and water conservation measures.

• Multi-generational living: Housing solutions that support family bonds and live-in carers are becoming more common.

• Increased social activities: Enhanced programs and activities are promoting social connections and active lifestyles among residents​.

 

How is the rental market for over-50s changing in 2024?

The rental market for over-50s is evolving to meet the growing demand for secure, long-term rental options. Economic factors such as inflation and rising home prices are making homeownership less feasible for many older Australians. Companies like Calyptus and Eureka are expanding their rental offerings, providing affordable and secure housing solutions tailored to the needs of the over-50s demographic. This trend is expected to continue, with a focus on rental security and targeted markets ranging from affordable to aspirational living​.

 

What new care options are available in retirement villages in 2024?

Retirement villages are increasingly offering a range of new care options to meet the diverse needs of their residents. Key developments include:

• Integrated care models: Companies like Aveo and Ryman are providing seamless transitions from independent living to various levels of care within the same community.

• Luxury care facilities: Enhanced amenities and personalized services are becoming more common in response to the growing demand for high-quality care.

• In-house home care services: Many retirement villages now offer in-house home care, allowing residents to receive professional care without leaving their homes.

 

How are retirement villages becoming more environmentally friendly?

Retirement villages are adopting numerous environmentally friendly practices to reduce their ecological footprint and meet regulatory requirements. Key initiatives include:

• Solar power: Many communities are installing solar panels to provide residents with renewable energy, often at reduced costs.

• Water conservation: Efficient irrigation systems and rainwater harvesting are being implemented to manage water resources sustainably.

• Electric vehicles: Communal electric cars and charging stations are being introduced to reduce carbon emissions and promote sustainable transport options​.

 

What is multi-generational housing in the context of over-50s communities?

Multi-generational housing in over-50s communities refers to living arrangements that accommodate multiple generations within the same residential area. This concept supports closer family bonds and provides practical solutions for caregiving. Examples include:

• Live-in carer accommodations: Facilities that allow family members or professional carers to live on-site with elderly residents, offering both support and independence.

• Flexible living spaces: Housing units designed with adaptable floor plans to cater to the needs of different generations, from young children to elderly grandparents.

• Community integration: Policies that encourage family members to live together and participate in community activities, fostering a supportive and inclusive environment​.