New Study Shows Increase in Retirement Village Population in New Zealand
According to a recent study, the population of retirement villages in New Zealand has experienced a significant surge. The study, conducted by Gavin Read and Hina Imran from JLL’s Auckland office research team, focuses on the multi-billion-dollar retirement village sector, which is currently undergoing major reforms recommended by the Ministry of Housing and Urban Development.
The study reveals that at the end of last year, approximately 50,791 individuals were living in retirement villages owned by the country’s six largest operators. This is a notable increase compared to the 48,746 residents reported in 2020. However, it is important to note that the majority of people aged 75 and above still choose to reside in their own homes. The figure of 50,791 represents only a portion of the estimated 383,510 Kiwis in this age group.
The research highlights the growth within the retirement village demographic, which mainly consists of wealthier individuals who are more likely to live in the upper North Island. JLL’s 2022 NZ Retirement Village Database identifies a total of 452 villages with 39,070 units, estimating the current population of retirement villages at 50,791 residents. This is an increase from the 425 villages and 37,489 units recorded in 2021.
Since 2012, the retirement village population has seen a 32% increase, with the number of villages growing from 343 to 451. The number of units within these villages has also risen substantially, growing by 70% from 21,815 in 2012 to 39,735 units as of last year. This increase in unit numbers reflects the trend of larger and more intensively developed modern villages.
Auckland has the highest concentration of villages in New Zealand, accounting for approximately 23% of the national stock. The research suggests that the sector will continue to expand, with the development pipeline indicating ongoing growth and redevelopment of existing villages. It is crucial for the sector to ensure that these units are delivered in the right locations to meet the demands and preferences of future residents.
Among the six major owner-operators in the country (Ryman Healthcare, Metlifecare, Summerset Group, Bupa, Oceania Healthcare, and Arvida Group), around 65% of the 422 villages have a hospital with 19,300 beds, making up 50% of the total aged care industry’s bed count.
Looking ahead, the study forecasts a significant increase in the 75-plus age group, which will continue to drive demand for retirement villages. By 2043, the number of people aged 75 and above is expected to rise by 376,120, reaching a total of 759,630, representing an increase of 98.1% over a 20-year period. The areas of Auckland, Hamilton, and Tauranga, collectively known as the golden triangle, are expected to remain attractive to potential retirement village residents. By 2048, it is estimated that the golden triangle will account for 48% of the total population of individuals aged 75 and above.
In response to calls for change within the sector, the Ministry of Housing and Urban Development recently proposed new regulations for retirement village owners. These regulations would require the repayment of residents’ money within six to 12 months and prohibit the charging of weekly fees once residents have left the village. The proposals aim to address concerns raised by organizations like Consumer NZ, which lodged a complaint about the misleading claims made by retirement villages regarding the availability of care facilities.
The findings of this study highlight the growing demand for retirement village living in New Zealand. As the aging population continues to increase, it will be crucial for the sector to adapt to meet the evolving needs of retirees across the country.
