The New Zealand property sector is unprepared for a huge increase in seniors needing to rent homes in the future, according to research from Te Ara Ahunga Ora, Retirement Commission.
Te Ara Ahunga Ora is predicting a 100 percent increase in renters aged 65 and over by 2048, compared to 2022 levels – calculations based on current housing tenure trends. That equates to over 600,000 seniors needing rental homes. It recently commissioned research into the readiness of landlords and property management companies to cope with this growth – and found our existing housing stock alone was not well configured to support accessibility needs.
Te Ara Ahunga Ora policy specialist Dr Jordan King says demand for accessible housing is growing with the aging population. However, the private rental sector is unlikely to provide enough accessible housing to meet growth in demand, he says.
The ‘golden assumption’ is that New Zealand retirees will have their financial wellbeing supported through mortgage-free homeownership, with home equity available to support modifications or to enable them to choose the best housing option for their needs, Dr King says.
“However, based on the current trends we are seeing this will no longer be the case, with accessibility and healthy rental housing needed more than ever.”
Dr King says the changes provide an opportunity for the private rental sector and property management industry to recognise the importance and value of accessibility modifications, and for industry discussions to take place on supporting older renters to ‘age in place’.
While almost half of the landlords surveyed as part of the research had never had a tenant aged over 65, the report found that landlords have a positive perception of older tenants, considering them as reliable, respectful, and low maintenance. However, while 60 percent of the landlords agreed older tenants may have accessibility needs that require property modifications, only a small number have considered making, or made, modifications to their properties for older tenants to date, due to limited experience with them.
Less than a quarter of landlords were aware of potential government funding available for property modifications and very few had accessed it. However, 39 percent would consider making modifications and 41 percent would be open to tenants making modifications themselves, with permission.
Dr King says there is also scope for the Build-to Rent industry to expand their offerings for older tenants including increasing accessible stock numbers and offering moderate or lower cost options.
The research was based on a survey of 709 landlords and interviews with eight property management companies and nine build-to-rent operators. It was carried out by research firm Perspective.
