Study reveals critical gaps
A new report commissioned by the Retirement Commission revealed that New Zealand landlords and property management companies are unprepared for the growing number of older tenants in the private rental sector.
The research, conducted by Perceptive, surveyed 709 landlords and interviewed eight property management companies and nine build-to-rent operators to provide insights on demographics, behaviors, attitudes, and considerations related to older tenants in the rental market.
Projected increase in older renters
The Retirement Commission estimated that more than 600,000 New Zealanders aged 65 and over may be renting in the private rental sector by 2048, a 100% increase from 2022 levels.
“The findings from this research suggest the private rental sector is unlikely to provide sufficient accessible housing to meet the growing demand,” said Jordan King (pictured above), policy specialist at the Retirement Commission.
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Landlords’ perceptions and actions
The report revealed several key findings:
- 74% of landlords believe it is important for ageing tenants to remain in a property as they age, even if modifications are necessary.
- Landlords generally have positive perceptions of older tenants, viewing them as reliable, respectful, and low-maintenance.
- 60% of landlords agree that older tenants may have accessibility needs requiring property modifications.
- Nearly half of the landlords surveyed have never had a tenant over 65 years of age.
- Only 15% of landlords have made or considered making modifications to their properties for older tenants, with most modifications funded by landlords themselves (57%).
Barriers and opportunities
King pointed out that the existing housing stock is not well configured to support those with accessibility needs and that the cost of modifying dwellings can be high.
“Renters face barriers both in terms of financing modifications and seeking landlord permission for modifications of a rental dwelling to occur,” he said.
Build-to-rent developments
The report also explored the emerging build-to-rent (BTR) developments, which are purpose-built rental properties offering professional management and long-term leases.
While BTR companies are not currently focusing on older tenants, they are aware of the importance of incorporating universal design standards into developments.
There is potential for the BTR industry to expand their offerings for older tenants, including increasing accessible stock numbers and offering moderate or lower-cost options.
“The ‘golden assumption’ is that New Zealand retirees will have their financial wellbeing supported via mortgage-free homeownership,” King said. “However, based on current trends, accessible and healthy rental housing is needed more than ever.”
For more details, read the full report, “Population Ageing and the Private Rental Market: How Prepared Are NZ Landlords”, available here, and the accompanying policy brief, available here.
Read the Retirement Commission media release.
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