Affordable retirement living – catering for affordable housing for older women at risk of homelessness

A recent paper by the Property Council of Australia’s Retirement Living Council highlights the housing affordability crisis facing older women in society and explores the role of the retirement living sector in providing secure long term accommodation for older women who could be at risk of homelessness.

There is an increasing number of women in Australia who cannot access secure long term accommodation as they age.  The report explores a cohort of older women termed “the missing middle” – those with savings in excess of the cap to qualify for social housing, but who cannot secure a loan to purchase a house due to age or income.

With superannuation levels among this demographic at very low levels and the rental market very tight, these women have limited options for long term housing security, often using their life savings to pay for rent in housing that may not suit their needs as they age.

The report makes eight recommendations aimed at making retirement living more accessible for these women who could not otherwise afford a full ingoing contribution under standard village models.  The recommendations are:

1. The establishment of a retirement living priority support service and online portal to connect vulnerable women with affordable retirement living options by way of pre-market listings.
2. Amending the way that the Commonwealth rent assistance qualifying criteria is applied to remove (or increase) the caps on the home ownership proxy indicator. This will permit more women to qualify for Commonwealth Rent Assistance in a retirement living setting and improve overall affordability and stability.
3. Expanding accessibility to home care funding so that residents in retirement communities can readily use Commonwealth home care funds to pay for services whether supplied on a per use or communal basis.
4. Providing a GST equivalent rebate on construction costs for operators who build additional dwellings to meet a minimum quota of affordable housing options in their villages.
5. The establishment of government backed loans for women who have a minimum of 30% equity to put towards the cost of entry to an independent living unit. The advanced funds would be repaid in full from the exit entitlement on termination of the residence contract.
6. Expanding the shared equity model to cover over 55s living within a retirement village.
7. Providing early access to superannuation without penalty so that women who are over 55 and still working can secure a permanent home.
8. Exploring the delivery of grants to support innovative housing solutions in conjunction with various retirement village industry stakeholders.

This is a growing issue and likely to continue to receive increased consideration by stakeholders including government over the short and long term.

A copy of the report can be accessed here.  If you could like to discuss the report recommendations, or explore options to diversify the models currently offered by your organisation (such as instalment model contracts and rental models), please do not hesitate to contact us.

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