New Zealand needs 24,507 senior living units by 2033 to house an ageing population. Current pipeline forecasts 20,746, leaving a shortfall of almost 4000 units.*
The senior living sector is New Zealand’s largest supplier of new housing. A growing need to build and provide more senior living facilities presents unique investment opportunities. *JLL Retirement Village Market Report, Voxy, 19th July 2022.
Ageing population - baby boomers driving demand
A baby boom at the end of the Second World War has resulted in an ageing population - also known as the ‘Silver Tsunami’. The first of this generation turned 70 in 2016 and demographic projections show continued growth is expected:
Key reasons to invest in the senior living sector
The senior living sector is struggling to keep up with demand. Unlike some other industries, stability in the senior living investment sector has proven to be resilient through a challenging economic environment. Key trends driving the growth of New Zealand’s senior living sector include:
Increased popularity,
and acceptance
Senior living facilities provide safe, sociable environments with other like-minded residents, giving peace of mind for them and their families.
New Zealand’s housing shortage
New Zealand’s housing shortage combined with the increase of multi-level townhouses replacing single level dwellings, contribute to the demand on senior living.
Enhanced product and care options
Many senior living communities now have onsite aged care facilities and other health support services. This means a continuum of care, allowing residents to ‘age in place’.
Improved commercial terms, well regulated
The sector is orderly, well-regulated and provides a quality lifestyle for retirees.
"I am a hands-on investor; I've recently discovered Senior Trust and am keenly awaiting their next offer to increase my investment. I appreciate that Senior Trust pays an excellent interest rate - and on time. I have confidence in the company's strict criteria for funding retirement developments."
Marion, Takaka
