Australia is on the wrong track when it comes to housing, especially for the aged, a new report has found.
Per Capita, a think tank, has published a new paper called ‘The Head, The Heart and The House’, which argues that public policy has failed to grasp the non-rational elements of decision-making around housing. This has lead to a misguided “rational policy nirvana”, it says, that hopes older people will downsize and “free up” housing for younger generations. While this might lead to increased supply and improved housing affordability, the report has found that in actuality many people will choose to age in their current homes.
In addition to this, the report points out that approximately 15% of Australians aged over 65 are renting. Anglicare research, meanwhile, has shown that only 6% of Australian rentals are affordable and appropriate for couples on the age pension and this goes down to 1.5% for single pensioners. Currently, around 30% of under-65s rent, which could mean this problem is only likely to become more challenging in years to come.
In response to these issues, Per Capita has called for a policy mix that adapts the current housing stock to longer lives while also developing new housing, particularly for the vulnerable aged. As Emily Millane, the report’s author, states: “The starting point is to let go of the idea that rational policies and financial incentives are the only way to influence older people about where and how to live. This approach has not worked.”
Read the full report here.
