Goal 3 of the Positive Ageing Strategy

Affordable and suitable housing is critical to people’s health and wellbeing.

Details below about this goal are taken from the 2014 report on the Positive Ageing Strategy, published in April 2015.  Your feedback will help inform the next comprehensive update due to be carried out in 2017.

More information and references are available by downloading a full copy of the report.

Housing: key achievements

• Helping low-income and at-risk older people with housing costs
• Improving the energy efficiency of current housing
• Progressing housing based on the principles of ‘universal design’

What’s happening

Older people have high rates of home ownership…

Older people currently have much higher rates of home ownership (71 percent in 2013) than the total population (49 percent), and most still live in their own homes, either owned or rented.

The hardship rate for older New Zealanders is currently low -- despite being ‘low income’25, high home ownership rates enable most to be ‘asset rich’ and able to sustain an adequate standard of living.

... but there are issues with housing suitability and affordability

Despite this, there is a range of issues associated with housing older New Zealanders. These issues include, but are not limited to, the following:

• there is a group of older New Zealanders with low living standards, with the majority of this category found in the group of those who do not own their own home and is especially pronounced within older Māori and Pacific populations and among those who are living alone
• the forecast rise in the proportion of older New Zealanders (currently aged 45-64) who will be renting may increase pressure on social services at the lower end of the housing scale, such as social housing demand
• as more older people (particularly those aged 80 and over) in the future may choose to stay in their own home, issues may arise in terms of; in-home support, the ability of older people to maintain a property in reasonable condition (particularly when they are asset-rich but on a low income), and with sustainability or accessibility as their needs change
• practices of some retirement villages, including contractual settings, fee arrangements, financial stability and quality including adequate supply of retirement village accommodation
• isolation of older New Zealanders in particular in rural and provincial communities
• the high proportion of people aged 65 or over who have a disability and may not have access to suitable accommodation
• barriers to downsizing, which put additional pressure on supply of housing especially for families.

Older people have a range of housing options

The increasing demand for, and supply of, retirement villages is projected to continue, particularly as more people reach the age of 75. Currently 4.5 percent of those aged 65-plus and 10.5 percent of those aged 75-plus are in retirement villages.

Other housing options include:

• downsizing to smaller properties
• communal living or flatting options such as those offered by Abbeyfield, which provides affordable rental housing for older people in locations around the country
• the use of reverse equity mortgages

There is a general lack of data on future housing trends involving older people. However, the three-year (2013-2016) ‘Finding the best fit’ research project is focusing on the implications of home downsizing for people in mid-life and retirement, supporting informed decision-making.28

The Government is encouraging a greater diversity of social housing

The Government is continuing work to ensure that vulnerable New Zealanders, including older people at risk, have access to good-quality housing, whether it’s owned by Housing New Zealand or, increasingly, by community housing providers. A number of social housing providers receive the Income Related Rent Subsidy, through which they’re paid for the difference between the value of the Income Related Rent and the market rent rates for their social housing properties. This enables them to house people who can’t afford housing or find it difficult in the private market.

Many councils provide social housing

New Zealand’s councils manage about 11,000 social housing units, of which the majority are for older people. Some councils are considering selling their social housing, but as yet it’s unclear how much would be sold and whether sales would be to social housing providers. Any sell-off could increase housing pressures for older people.

The Accommodation Supplement helps with housing costs

A range of government support is currently available to enable older New Zealanders to access adequate, affordable and appropriate housing for their circumstances, such as the Accommodation Supplement, Income-Related Rent Subsidies, Residential Care Subsidies and Residential Care Loans, and a range of health and other services to support living independence. According to MSD, of the 38,500 recipients aged 65-plus receiving the Accommodation Supplement, 27,030 are renting, 5,045 are boarders and 6,394 are home owners.

Examples of services and programmes

Wanganui City Council – Housing insulation project

Recognising the health impacts of un-insulated homes (and the costs of heating them), Wanganui City Council is leading a project to insulate council houses that have older tenants. The project has achieved a 93 percent satisfaction rating from the tenants.

Commission for Financial Capability – Information on retirement village living

The Commission has developed a Thinking of Living in a Retirement Village? booklet for existing and intending retirement village residents and their families. It includes information on their rights and responsibilities under the Retirement Villages Act 2003.

The Commission will be delivering seminars this year around New Zealand as a way for people to get more information.

Office for Disability Issues – Focusing on access and universal design

The Office for Disability Issues advocates the use of access and universal design principles in delivering architecture that helps people to live safely and independently in their own homes at all ages and with all abilities. It’s working with a range of government and other agencies to implement these principles in both public buildings and private homes.

MSD and MoH – Universal housing design in Christchurch

Enable New Zealand, with support from OSC and MoH, provides free universal design advice to the people of Canterbury as they repair damaged homes and build new ones. A number of social housing suppliers plan to adopt universal design principles.

So how are we doing?

While older people generally have high levels of home ownership (often mortgage free – a key contributor to the current low hardship rate), the younger generations’ home ownership patterns could pose challenges in the future.

Future housing policies will need to consider our ageing population and ensure that the housing is accessible and located near public transport, social infrastructure and key services where appropriate. More information also needs to be made available by relevant organisations on the growing number of housing options to help older people make informed choices.

It’s pleasing to see the adoption of accessibility and universal design principles that will benefit people of all ages.

What do you think?

1. How can more publicity be given to the growing number of housing options for older people to help them make well informed choices?
2. How can we encourage industry and community groups to become involved in designing and supplying suitable housing that meets older people’s needs, including building a network of age friendly communities?
3. What are the barriers to applying universal design principles and looking at suitable models for ethnic groups such as Māori?

If you would like to share with us your views on Goal 3, then please send us an email.