AUCKLAND, New Zealand: Although the retirement village sector added 2,298 new units in 2023, recent data reveal that the pace of development remains insufficient to meet rapidly rising demand driven by demographic shifts.
Executive Director of Senior Trust Retirement Village Income Generator (STIG), John Jackson, said the 2,298 new units, according to the JLL Research Retirement Villages Market Review, are higher than the 5-year average of 1,913 units and the 10-year average of 1,696 units.
“However, only 350 units were approved in the second quarter of 2024, marking a 31 per cent decrease from two years prior,” he said.
Researchers forecast that with the 75+ population set to grow by over 40 per cent by 2033, the sector needs to deliver more than 20,000 additional units over the next decade to keep pace with demand.
It is also reported that meeting projected resident needs would require an average of 932 new units annually for the next 25 years, amounting to an additional 23,000+ units by 2048.
This growing divergence between supply and need carries significant consequences. Without substantial acceleration, thousands of older New Zealanders risk being left without suitable, secure housing options, and pressure will mount on hospitals and informal care networks.
Shortages in the regions
Senior Trust Retirement Village Income Generator’s lending footprint spans multiple regions, funding projects in Orewa, Paeroa, Amberley, and Kerikeri.
Executive Director John Jackson said the numbers are simple yet urgent.
“Although some building is underway, it isn’t nearly enough. Our portfolio shows where investors are backing supply, but there remains areas where demand is unmet. If we don’t lift build rates substantially, older New Zealanders will face fewer options when it’s their time to transition.”
He said the consequences ripple beyond housing. Local councils and healthcare planners must factor this shortfall into their designs for transport, aged-care capacity, and community services.
“In regions where retirement village infrastructure is lagging, seniors may face isolation or lose access to integrated wellness amenities,” Jackson said.
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ABOUT
Senior Trust Retirement Village Income Generator Limited is a specialist lender to New Zealand’s retirement village and aged care sector. Through secured lending to experienced operators, Senior Trust funds the development and expansion of premium senior living communities nationwide.
Senior Trust Retirement Village Income Generator Limited is the issuer of the products. The Product Disclosure Statement for the offer is available and can be obtained on our website at www.seniortrust.co.nz
STIG’s objective is to deliver returns to investors while supporting the growth of high-quality communities that meet the needs of New Zealand’s ageing population.
