The 2024 Colliers-Epic Retirement Housing Survey, partnered with Bec Wilson renowned speaker, columnist, and author of “How to Have an Epic Retirement” provides clarity on what the next generations of retirees will demand. 

The survey, the second year of a longitudinal study by Colliers, conducted an extensive review on the property and lifestyle desired by consumers in the emerging Modern Ageing demographic (55-80). 

Key findings of the survey are crucial in establishing the demands of the population over the coming years, with these including: 

Australia's population is ageing rapidly - by 2026, over 22% of Australians will be aged 65 and older, an increase from 16% in 2020.

More people ageing and with more wealth than ever before – the increase in longevity combined with the superannuation guarantee system, which is now 32 years old, is resulting in higher numbers of people entering retirement with more financial resources.

Greater aspirations – desire for both coastal and inner urban locations that offers lifestyle accommodation and style benefits. 

Age specific - cohorts <75-years desire to age in inner-urban housing, while >75-years preferences are to age in outer suburban housing. 

Low awareness - data shows the sector is poorly understood by consumers. Despite a growing number, there is low awareness of accommodation models in the 50s, 60s and 70 aged cohorts.  39% of survey respondents saying they did not know the difference between land lease communities (LLC) and retirement villages. 

Limited appeal - only 15% of respondents saying they would consider moving into a retirement or land lease community in the future with only 5% saying they would consider retirement village living specifically.

Low acceptance - 43% of respondents saying they would consider neither retirement living or land lease communities. 

“Retirement has changed, and housing desires of consumers certainly seem to be changing with it. The average age of retirement has shifted from 52 years in 2004/05 to 64.8 years in 2022/23. That’s an extraordinarily rapid shift.

Similarly, life expectancy has increased significantly for both males and females, especially when you use the ABS Life Tables with 25-year mortality improvements applied (ABS life tables 2015-17) which show that a 65 year old male today has a median lifespan of 88 and women a median lifespan of 90, while couples having the chance of one of them living to 94. This only being the median, more than 50% of the population can expect to live longer,” said Bec Wilson. 

"Product requirements change over time and the segmentation of needs are not homogenous.  There is a pronounced decision tipping point at 75-years-old when preferences change drastically. The current Retirement Village and Residential Aged Care models are converging and consumer needs are not being met,” Ian Sanders, Head of Colliers Healthcare and Retirement Living, Asia Pacific said.

It is clear there is three cohorts arising in the ageing population wave that need greater consideration by property providers, Wilson says. 

1. A cohort aged 55-75 seeking inner-urban or coastal lifestyle properties, a portion of whom indicated an interest in multi-storey developments - there is limited or no stock being developed to suit this demand. 
2. A cohort aged 55-75 interested in retirement community living products in the medium to long term where they can age in inner urban areas - there is a long-term future demand need for today’s 55-75s who have the money to access these potentially higher-priced products. 
3. Those aged 75+ interested in outer suburban lifestyle and retirement community stock that is more readily available, although constrained – this will be a declining group.

Over 52% of respondents to the survey want to retire before the age of 65. Traditional retirement village models cater to a cohort aged 75+. Deferred management fee (DMF) payment models are not suited to younger cohorts who will have increasing length of stays. 

Land lease communities are growing rapidly and filling this community living gap, but are limited to outer urban and more regional areas due to land availability, zoning restrictions and cost. 

“The data shows demand for retirement lifestyle housing in urban areas for early retirees – a type of property that just isn’t being built at the moment in any scale. There appears to be no urban business model that offers the benefits of community, in the same way as land lease or lifestyle communities.  

The data also shows there is not sufficient appropriate housing to support people in their passive retirement, when health declines and needs for community living increase, typically in the late 70s and 80s”, Bec Wilson said.

The survey reflects that coastal living is a strong objective, with 30% of respondents under 75 aspiring to housing in coastal areas. But the demand for urban areas in those under 75 (9.3% inner city, 29,7% inner suburban) far exceeded expectations. 

There is a growing cohort seeking modern standalone properties and increasing numbers looking for multistorey apartment precincts located in inner and middle suburbs, close to medical facilities. Such options are currently undersupplied. In what might be seen as a generational contrast, 70% of those aged 75+ are favourable towards smaller older style independent housing in outer suburban settings. 

“As age increases, the data reflects proximity to community, family and health services becomes more critical. Colliers reflects on these insights, and points to a greater need for innovation around accommodation and funding models, and for developers to focus on inner suburban developments considering the needs and wants of future generations.

New precinct developments may include assisted living apartments, build-to-rent (BTR), key worker housing and wellness centres integrated with traditional independent living units in a vertical or horizontal environment.” Colliers Director, Advisory Services, Healthcare and Retirement Living, Bruce Message said.