Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 538

Housing is a major issue for older people too

The Australian welfare system, including the Age Pension, was designed on the assumption that older people own their home and can age there. But the latest National Seniors Australia research has shown this to be far from true for many of us.

This year, the 11th National Seniors Social Survey, or NSSS-11, asked more than 5,300 people aged 50 and over about their housing situation.

It revealed housing affordability concerns plague two-thirds of us, and more than half are living in homes unsuitable for later life because they need modifications, security of tenure, or assistance to manage their size.

The findings are consistent with concerns across the country about rental and mortgage crises, showing they affect older people as well as the young.

However, they also ring a new alarm bell by suggesting that the current trend towards home-based aged care will not be sustainable.

Housing is increasingly unaffordable

Survey respondents were asked if they were concerned about their ability to afford suitable housing during the 12 months following the survey, and during the rest of their lives.

One third (34%) were concerned for the short term, with the level of concern ranging from “only slightly” (20%) to “quite” (9%) to “acutely concerned” (5%).

The figure almost doubled to two-thirds (65%) when respondents were thinking about the remainder of their life.

Unsurprisingly, people who rented were nine times more likely than everyone else to be “quite concerned” or “acutely concerned”. Those with a mortgage were four times more likely to feel that way.

Having higher savings or being in an older age group provided some protection against concern.

In written comments, people elaborated on the sources of worry about affordability.

These included:

  • The cost of buying housing, especially housing they wanted or that was accessible and age friendly.
  • High rent levels and interest rates.
  • Costs associated with retirement villages and aged care.
  • Costs of buying, selling, and moving.
  • Ongoing housing costs such as council rates, body corporate fees, and utilities.

As one person said, “House prices are going up and the cost of any renovations/adjustments are also going up quickly.

Housing is not secure for all

Housing security remains a pressing problem for renters. Commenters mentioned having been forced to move multiple times in the past few years, with one writing, “Landlords too greedy, never know if we will be asked to move, in our seventies and frail. Need more security”.

Comments also revealed that long public housing waitlists and a scarcity of retirement living options for renters contribute to the problem.

Obstacles facing older renters who want to buy, such as an inability to secure a home loan because of their age, have left people stuck in precarious rental conditions in later life.

The high costs of housing and changing life circumstances such as later-life divorce, have also left some homeowners without housing security.

Ageing in place is impossible for many

Around half the survey respondents said their current home is unsuitable for ageing in place, with only 44% saying their home is suitable as is.

But options to move to age-friendly housing are stymied by multiple factors.

About a quarter (26%) said their home would be suitable with modifications. But some respondents discussed difficulties affording any renovations and problems finding tradespeople to do the work.

A tenth (10%) said they were unable to make modifications, in some cases because they were renting. A further tenth (11%) were unsure if their home was suitable.

When asked what they would like to change about their housing, the most common theme was a desire to move to a home that was smaller or more manageable in terms of housework, yard work, maintenance, and accessibility.

Alternatively, people desired paid home support to help them stay in their current home. One commenter spoke for many when they wrote, “More support with property/yard maintenance to allow us to stay in our own home”.

For 19% of homeowners, the scarcity of age-friendly housing stock and other retirement options was a major barrier to making a move.

In particular, many people identified problems finding appropriate housing in the area where they currently lived. They were concerned that they would have to move elsewhere, to areas they did not know and lacked the support and services they had come to rely upon. Having to leave their current area was a barrier to moving for 29% of people.

Some homeowners faced the related problem of owning a low-value home. For 19% of respondents this meant that if they sold their home, they could not afford to buy one they would want.

Stamp duty adds to costs and was a barrier for a third of respondents (32%), while the hassle of buying, selling, and moving was a barrier for half (50%). Some commenters remarked on the physical, mental, and/or emotional difficulties presented by moving.

Yet staying in place may not be a viable option either, with commenters noting the scarcity of homecare workers, even for people who already had an aged-care package approved.

One respondent commented, “If only there were enough service providers available to provide the services I have codes for with MyAgedCare.

This tricky situation is a crisis waiting to happen and requires urgent national action on housing in conjunction with aged care that recognises the realities of older people’s living circumstances today.

 

Diane Hosking, PhD, is Head of Research, and Lindy Orthia, PhD, is a Senior Research Officer at National Seniors Australia.

 

8 Comments
Warunda
December 12, 2023

My own very limited observations are that most people leave it far to late in their lives to think about and/or act on what they need to do to be happy while aging in place. It is very similar to people leaving it far too late to plan for their retirement. These types of plans and actions need significant time and a great deal of thought as to what's important to each individual. As one gets older it gets much more difficult to make quick changes to one's finances and housing.

john flynne
December 10, 2023

The failure of SUPER Funds is they do nothing to assist their members to buy their own homes (which is recognised as the best secure asset for retirees but all they do is build indrequently housing for rent. Are the managers merely about self-interest for everyone but not their members needs it needs an honest reflection not political direction ,

Peter
December 09, 2023

Getting old isn't great no matter what data base you use. 

Crichton Philip
December 07, 2023

I & my wife (83,82) live in Warwick where we have been renting for 10 years. Having accumulated sufficient funds for a deposit on a home, we approached our local Credit Union . Their reply was "we don't lend money to retirees".
This statement is discriminatory and ageist, and in reality breaks the law.
The only other lender was far too dear.
I approached the Seniors Ombudsman and got this " our waiting list is 9 months."
I am now looking at a retirement Village which is affordable and has good conditions and no stamp duty on house sales.

Lisa
December 07, 2023

Some people seem to expect that they can downsize their old tired home and then afford a newly renovated/new albeit smaller home of their dreams, plus have extra cash to fund travel etc. A reality check is often needed.

Graham W
December 07, 2023

I agree Lisa. It is far better to keep your home in good repair and make a few changes to help you as you age. I put in safety rails.ramps etc to help us look after an aged parent. This was some years ago. They do not have any downside.indeed were a major blessing after needing them myself after a major illness.I am also making plans to cope with the possibility my wife may need a wheelchair in the future. We then can stay in our home and where everything we need is close by.

john
December 07, 2023

Agree 100%

Geoff
December 07, 2023

From the report:

"Anyone aged 50 years or over and living in Australia was eligible to participate in the NSSS-11. Invitations to participate were distributed to older Australians via the National Seniors membership database and online networks, and further distribution to other older Australians was encouraged. "

Not to dismiss the findings, but a self-selecting survey from people on an organisational database does not provide an accurate picture of anything other than the situation of the 5300 people who chose to fill out the survey. Applying the findings to a wider population is a bit of a long bow. The points being made are valid, but probably not in the same percentages across the country as a whole.

 

Leave a Comment:

RELATED ARTICLES

New strategies to fix the housing crisis

The new retirement challenges facing Australians

Wealth is more than a number

banner

Sponsors

Alliances

© 2024 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.