New Zealand’s private rental market is facing a massive shift as the number of older Kiwis needing rental accommodation is set to skyrocket.
By 2048, we’re expecting around 600,000 people over the age of 65 to be renting, doubling the current number. According to the latest report from the Retirement Commission, the private rental sector just won’t be able to keep up with this demand.
The problem is twofold. First, there’s simply not enough affordable housing suitable for pensioners, and second, more people are hitting retirement age without owning their own homes.
That means more pensioners will rely on rentals, but with a fixed income, they’ll be feeling the pinch. Finding accessible, affordable rentals will be tough, and without intervention, many of these renters could face real financial stress.
The report calls for more public housing, a more flexible private rental market, and better support for elderly renters. It’s not just about building more homes – we need to be thinking about how to make these homes age-friendly and accessible.
If we don’t, the housing shortage will hit pensioners hardest, with many likely to experience housing insecurity.
For landlords, this demographic shift presents a unique opportunity. By making properties more accessible and affordable for older renters, you’re tapping into a growing market. The demand is there – and it’s only going to increase. But meeting this need will require a different approach, with more focus on what older tenants really need from their homes.
In short, New Zealand’s population is ageing, and the housing market needs to adapt. For property investors, now’s the time to get ahead of the curve. If you can provide the right kind of housing, the opportunities are huge.
But without change, pensioners will be left struggling to find secure, comfortable homes in a market that simply won’t have enough options for them.
So, what does the perfect place look like for older Kiwis? Here are the key things to keep in mind:
- Single-level living: Stairs? Forget about it. Homes on one level are ideal. It’s about making it easy to get around without risking trips and falls.
- Accessibility: Think walk-in showers, wider doorways, handrails—anything that makes moving around the home safer and easier. Future-proofing the house for any mobility issues is key.
- Close to amenities: It’s crucial to be near essential services—doctors, supermarkets, public transport. Nobody wants to travel miles for the basics, especially if getting around is harder.
- Low maintenance: Homes that don’t need much upkeep are a big win for pensioners. Small gardens or properties in managed complexes where someone else handles the maintenance? Perfect.
- Affordable rent: Many pensioners are on a fixed income, so affordable housing is non-negotiable. Keeping costs in check is crucial, and rent control or subsidies can make all the difference.
- Security: A safe, secure home is a must. Whether that’s in a gated community or just a place with good locks and lighting, pensioners need to feel protected.
- Energy efficiency: Warm, well-insulated homes that won’t cost an arm and a leg to heat are vital. Pensioners need to be comfortable, especially in winter, without worrying about sky-high power bills.
By focusing on these things, you’re creating the perfect living environment for older Kiwis—safe, comfortable, and tailored to their needs.
Are you ready to adapt to his shift in the market?
