Queensland Retirees Face Housing Squeeze As Retirement Village Demand Surges

Queensland retirees are being caught in a growing housing squeeze, with industry figures showing retirement village demand is surging while supply struggles to keep up.

New data from the PwC-RLC Retirement Census revealed that almost 27,000 waitlist registrations were lodged nationally for retirement village homes in 2025, exposing a widening gap between older Australians ready to move and the homes actually available.

The figures also revealed that 38 per cent of retirement villages now have a waitlist, with demand strongest for two-bedroom homes and more affordable options.

NSW has the biggest waitlist at 7826 in 2025, followed by the ACT (6340), South Australia (4775), Westerna Australia (4464), Queensland (2432), Victoria (863) and Tasmanaia (125).

But the supply pipeline shows that not enough homes will be built to accommodate those already waiting to make the move in some states.

Nationally, just 17,668 are forecast to be built between now and 2031, the report revealed.

The Sydney Metro region accounts for the biggest portion of that forecast – 4199 units – but will fall well short given its waitlist of 7826.

Brisbane is forecast to add 2121 units between now and 2031, while 1707 are tipped for other parts of the state.

ABS data shows that 156,000 people retired from the workforce in 2024-25 nationally, with the average age of retirement sitting at 65.6 years.

“Just over 800,000 people intend to retire in the next 5 years, and 294,000 in the next 2 years,” the ABS data revealed.

The Retirement Living Council (RLC) said demand for retirement homes was not the problem – supply is.

“Too many older Australians are ready to move into a retirement village, but the homes they need either aren’t available or being built and delivered fast enough,” RLC executive director Daniel Gannon said.

And for the state’s property market, the issue goes well beyond the retirement sector.

If older homeowners can’t secure a place in a retirement village, many will delay selling the larger family homes they no longer need.

That means fewer established houses returning to the market at a time when Queensland is already battling a broader housing shortage.

The report, compiled by PwC using data from 100 operators covering 1123 retirement villages and about 100,000 units, found that demand was being driven not just by lifestyle, but by affordability and the need for support.

According to the report, 70 per cent of waitlists are linked to villages where two-bedroom independent living units cost less than $1 million, suggesting the hottest competition is for the more attainable end of the market.

That matters in Queensland, where inflated house prices and selling costs have made downsizing harder for many older owners trying to find a home that is both suitable and affordable.

The Census found retirement village homes remained relatively affordable compared with the wider market, with the average two-bedroom independent living unit in the Brisbane metro region averaging $667,000, or 60 per cent of the median house price.

In regional Queensland, the median two-bedroom independent living unit price is $565,000, or 56 per cent of the average house price.

Yet vacancy rates across Australia’s retirement villages remains low at 6 per cent in 2025, up slightly from 4 per cent in 2024.

In Queensland, the vacancy rate is just 4 per cent, the report revealed.

“Retirement villages are no longer simply places to live,” Mr Gannon said.

“They are communities where older Australians thrive – accessing housing, healthcare, support services, connection and independence in one place.

“That matters because every older Australian who remains healthy and independent for longer is one less person pushed into a public health and aged care system already buckling under demand.”

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Australia does not have an official retirement age, but the government age pension kicks in at 67.

However, according to the ABS, the average age of retirement was 57.3 years in 2024/25.

The Realestate.com.au GemLife Downsizing Australia Report, released late last year, revealed that by 2050, over one third of Aussies would be aged 55 or older.

“Downsizers are overwhelmingly driven by two top motivators when purchasing their next home,” Realestate.com.au senior economist Angus Moore said at the time.

“One-third (34%) say they want a lower-maintenance property – nearly twice the rate seen among all buyers – while 29 per cent cite retirement as their primary reason.”

But 23 per cent of those surveyed revealed that they had not made the move due to being unable to find a smaller home to suit their needs.

The latest REA Group Market Trends report shows the households with the smallest number of people residing there – average of 1.7 people – were in Cow Bay and Lamb Island, with suburbs such as Kings Beach, Broadbeach, North Ward and Townsville City, Kangaroo Point, Brisbane City and Gladstone Central having just 1.8.

The 2021 Census revealed that Baby Boomers – those aged 55 to 74 years at the time – made up 21.5 per cent of the population, tying with Millenials (25-39 years).

Gen X (40-54 years) made up 19.3 per cent.

More recent ABS analysis revealed the areas with the oldest median ages in Queensland were also retirement hotspots – Bribie Island (63.8 years), Cooloola (62.6 years) and Southern Moreton Bay Island (61.4 years).

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