As Australia ages, what are the opportunities for home buyers?

Australia is ageing, and home buyers and investors should consider this when purchasing a property

Residz Team 4 min read

As Australia ages, what are the opportunities for home buyers?


By 2066, around one in five Australians will be aged 65 or older.

According to the Australian Institute of Health and Welfare’s most recent statistics, the percentage of the Australian population aged 65 and over has increased from 4.6% in 1922 to 16.2% in 2021.

It says the percentage of older Australians in the population is set to continue increasing to approximately 20.7% in 2066, with particular growth between 2009 and 2029.

So, what opportunities does this present for home buyers looking for capital gain, or property investors hoping to attract older renters?

Medical facilities

With an ageing population, there will be an increased demand for medical facilities such as hospitals, clinics, and aged care facilities.

Already, properties near hospitals attract a premium. A U.S. academic study (Rivas, Pital et al, 2019) found that postcodes that contained larger hospitals had a higher average home price and rent than those with smaller hospitals or no hospital.

The study found a direct correlation between the number of doctors affiliated with a hospital and both home price and rent.

Therefore, some of the best investment opportunities must be near Australia’s highest-ranked hospitals in Newsweek’s World’s Best Hospitals 2023 list.  

Seven Aussie hospitals were among the 250 hospitals on the list:

(The highest ranked hospital in the world is the Mayo Clinic in Rochester, U.S.)


Demand for retirement homes and assisted living facilities

As the population ages, there will be an increasing demand for retirement homes and assisted living facilities.

Property investors could look to invest in properties that can be converted into such facilities, or land that might be suitable for such developments.

Demand for accessible housing

The majority of older Australians live independently at home. According to the Australian Human Rights Commission, only one in four people aged 85 years or over live in care accommodation.

In light of this, older people may require housing that is more accessible, such as single-storey homes, properties with ramps or lifts, homes on flat land, and those located close to cafes and amenities.

Home buyers and property investors could consider investing in properties with these features.

Renovations and upgrades

As older Australians age, their housing needs may change. Property investors could look for opportunities to renovate and upgrade properties to make them more suitable for the needs of older residents.

According to home renovation site Wood Create, this could include installing handrails and grab bars in the bathroom, adding a ramp to the front entrance, or widening doorways to make it easier for a person using a wheelchair or walker to move around the home.

It also suggests making the home more energy efficient to lower utility bills and make the home more comfortable. Upgrades could be installing energy-efficient windows and appliances, adding insulation, or upgrading the heating and cooling system.

Another home renovation option to appeal to an ageing population is to make the home more secure. You could install security cameras, add deadbolts to doors, or upgrade the home’s lighting to make it safer for an older adult to move around the home at night.

Affordable housing

There is a critical shortage of suitable affordable housing for older Australians, particularly in areas with good access to healthcare, public transport, and other amenities.

Many older Australians are on fixed incomes and cannot afford to pay higher rents or mortgages. This is particularly true for women, who are more likely to live longer and have lower retirement savings than men.

Women living on a low, fixed income, who have not had the opportunity to buy a home are at great risk of homelessness.

According to the Older Women’s Network of NSW, in 2019, women over 55 were the fastest growing group of homeless people in Australia.

Property investors or home buyers who can help solve for this crisis are desperately needed in communities across Australia.

Short-term rental properties

Older Australians are likely to travel more once they retire, and short-term rental properties may provide an attractive investment opportunity.

Investors could look for properties located in popular retirement destinations (especially given some older people might be “trying before they buy” in the area) and target this demographic with their marketing efforts.

In 2022 Canstar and  Director of Atlas Property Group, Lachlan Vidler named the best places to retire as:

Canstar says factors that got the towns listed included the current value of property in the area, affordability, future potential of the locations, demographics (particularly people of a similar age and lifestyle), transportation links, proximity to amenities such as medical services, and the availability of events and activities to do.

Luxury property

Of course, many older Australians will be cashed up from the property boom of recent decades and seeking luxury low-maintenance properties in the thick of the action.

Home buyers and property developers who can build or renovate to a very high standard will attract discerning buyers where money is no object.

Wine cellars, gyms, health retreats, butler’s pantries, lap pools, and basement garages were listed as some of the luxury features that added most value to a property in a 2022 Domain article by Sue Williams.

So, overall, as the Australian population ages, there are myriad opportunities for home buyers and property investors to tap into the changing housing needs of older Australians.

Residz specialises in all sorts of research that can help renters, buyers and sellers find out information about property.

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