Regional Retirement Housing Gaps Widen As Demand Rises

AUCKLAND, NZ — New analysis of retirement village penetration rates reveals sharp regional disparities in housing provision for older New Zealanders.

While some regions are comparatively well supplied with retirement village units, others continue to fall behind, raising concerns about equity of access as the population ages.

Research says the Bay of Plenty remains the most developed retirement village market in the country, with penetration rates approaching 18 per cent. Canterbury is showing strong growth as new projects reach completion, and Auckland, although the largest region overall with the highest number of units, continues to face pressure as demand outstrips supply. Nationally, penetration sits closer to 14–15 per cent, underscoring the gap between regions.

The Retirement Villages Association (RVA) has also highlighted the uneven picture. Bay of Plenty and Tauranga in particular have been leaders in village development for more than a decade, while regions such as Wellington and parts of the lower North Island remain underserved. These imbalances mean the options available to older people are often dictated by geography rather than preference or affordability.

Senior Trust Retirement Village Income Generator’s own loan book provides a frontline perspective on where some capital is flowing. Lending has supported projects in Orewa, Paeroa, Amberley, and Kerikeri, all areas where new capacity is needed to absorb demand.

Executive Director Scott Lester said that where a person lives dictates their options.

“Some regions are well served, others risk falling further behind. The sector needs to be mindful that national statistics mask very local disparities, and for older New Zealanders, this translates into real differences in the choices available to them.”

These disparities are not only a matter of convenience because retirement villages often provide integrated health, wellness, and community facilities. Where provision is lacking, older people may face isolation, delayed access to care, or greater reliance on overstretched hospitals and home support services.

The imbalance also has implications for families who may need to travel further to support loved ones who cannot find appropriate housing close to home.

Industry analysts point to several factors driving the uneven distribution. Land availability and cost remain significant barriers in regions such as Wellington, where development sites are scarce and expensive. Planning and consenting regimes differ across councils, affecting how quickly projects can proceed. In contrast, Bay of Plenty has historically offered a more effective development environment, helping it establish a lead in retirement housing.

For Canterbury, growth reflects both post-earthquake rebuilding and a strong pipeline of projects backed by local and national operators. As a result, penetration is increasing from a low base, though it remains below Bay of Plenty levels.

For Auckland, the issue is scale because, while the city has the largest number of villages and units, it also has the largest ageing population. The result is that despite absolute numbers, penetration rates remain closer to the national average, highlighting that more supply will be required to meet the needs of the region over the next decade.

With the population aged 75 and over expected to grow by more than 40 per cent by 2033, the urgency of addressing these regional disparities cannot be overstated. Unless build rates rise in underserved areas, the gap between well-supplied and undersupplied regions will widen, entrenching inequities in later-life housing.