Affordable housing crisis forcing older renters into aged care

The nation’s housing crisis is impeding the ability of older Australian renters to secure appropriate housing, a new report reveals.

Australia’s housing affordability is in crisis mode, and it’s not just young people that are facing hurdles – the cost and quality of housing is forcing many older renters to move into residential aged care earlier than required.

The Ageing in Place report released by Anglicare Australia reveals that older renters are at a significant disadvantage compared to homeowners when it comes to their ability to age independently.

Despite a significant preference (87 per cent) to stay at home as they age, 72 per cent of older renters said high costs stopped them from doing so, compared to just 15 per cent of owners.

In addition, the report found that nearly half of older renters live in poverty, with the typical homeowner aged over 65 spending just five per cent of their income on housing, compared to nearly 30 per cent for renters.

“Without the capital from owning a home, most renters are unable to buy into a retirement village. They have little left over from the aged pension after rent is paid, pushing many into poverty and hardship,” reads the report. 

“For too many older Australians, the only option when they can’t find a suitable rental is residential aged care.

“Residential aged care is a vital service for people who are ageing – especially people whose health is declining or need higher levels of care – but people shouldn’t be pushed into it early, simply because the cost or quality of housing is preventing them [from] ageing at home,” the report continues.

Anglicare Australia is calling on all levels of government to address the impact of the housing crisis on older people. Executive Director Kasy Chambers says this advocacy includes introducing a new model of leasing that offers longer-term security and protection against rent increases for older people as well as investing heavily in social and affordable housing.

“Everyone should be able to live life to the fullest as they get older. For most people, that means ageing in their own home,” explains Chambers. “We need reforms to aged care and home care so that renters can make changes to their homes, get the support they need, and stay independent for longer.”

“Social housing is the most powerful way to keep older people in secure homes, and stop them from going into aged care before they’re ready.”

The report also found that the quality of Australian homes are not age-appropriate. With renting traditionally viewed as a transitional housing option for young people, many homes do not adequately support the health and wellbeing needs of ageing Australians. 

Landlords receive little to no incentives to improve the energy efficiency and infrastructure of their homes to better protect renters – and moves to build new housing are not progressing quick enough to meet demand.

Just under half of renters surveyed (46 per cent) said their home was suited to manage the requirements of an older person, compared to 70 per cent of owners.

Calls for reform have been echoed across the country, with the Queensland government announcing a landmark summit to tackle the state’s housing crisis, bringing together key stakeholders and industry leaders to advance responses to the growing and complex challenges of home ownership.