MEDIUM DENSITY OPTIONS NEED TO BE DEVELOPED IN AND AROUND ESTABLISHED, AGING SUBURBS TO BETTER ADDRESS THE NEEDS OF OUR AGING POPULATION AND RELEASE LARGE HOMES TO FAMILIES THAT REQUIRE THE SPACE
More than half a million single Australians over the age of 60 currently reside in detached houses across the country. Originally intended for families, these large properties can prove to be a costly burden for aging singles as regular maintenance is often required along with the heating and cooling of unused space.
An April study by Urbis, “Does Australia have the right housing for older people?”, describes this segment of the market as less likely to relocate than any other home owner in Australia. With a 57 per cent increase in single occupants over the age of 60 expected by 2026, there will need to be significant changes to public policy and property if we hold any hope of servicing their needs.
The Federal Government’s $112 million trial program aimed at assisting the elderly to downsize their homes sits as the centrepiece of a budget that has otherwise offered little assistance to property buyers and sellers. Seniors within this bracket will be able to downsize their homes without affecting their pensions, via a means test exemption of up to $200,000 for ten years.
The program aims to remove some of the disincentives seniors face when debating the move to a more age-appropriate property. However, it will only apply to home owners who have owned their property for at least 25 years, excluding many seniors who find themselves in a position where their family home is no longer suitable to their needs.
Whether or not you see this policy change as a future reality or simply the dying wishes of a government on its last legs, it is a positive step towards addressing the needs of this complex demographic.
Community and social factors weigh heavily on the decision to downsize. Residents build networks and connections within the communities in which they live and there is a reluctance to leave this behind. So can we expect that people that this program applies to will jump at the opportunity to now sell their home of 25 years or more?
For seniors living in highly established urban areas they are often forced to move elsewhere in order to find medium density housing solutions. While for some, the prospect of relocating to an apartment or unit in another area often implies both physical and social isolation.
Finding suitable accommodation for single seniors also has a downstream effect on families who are unable to find dwellings that suit their own needs. The natural course of transition would result in seniors moving into medium density arrangements and selling their large homes to families who require the space. This natural cycle forms part of the housing supply for the next generation of families.
Adelaide, home to the oldest capital city population in mainland Australia, unsurprisingly also boasts the highest number of seniors in aged care out of any capital city. However, there are also less single seniors living in detached housing in comparison to most other Australian capital cities. The successful integration of retirement villages and aged care facilities within established suburbs has proven that seniors will downsize if offered housing close to or within the area that they currently live.
Public policy and the property market needs to recognise the sensitive nature of this senior market. Medium density options need to be developed in and around established, aging suburbs to better address their needs and release large homes to families that require the space.