Opening address to the Housing in an Ageing Society Forum

Good morning and welcome to the Housing in an Ageing Society forum organised by the Centre for Housing Research. 

Today challenges us to think about older people's housing needs in 2050.

I am not sure that challenge is the right word to use. 

I would like you to consider the possibilities and opportunities that housing an ageing population presents to New Zealand. 

Today is not about helping people to save for their future - it is about producing the right housing product that consumers either want to buy, or rent, or lease in their later years.

So what will the typical older consumer look like in 2050? 

Well we know from New Zealand statistics that over 1.35 million people will be aged 65 years or over - equivalent to a city the size of Auckland. 

The numbers of rented households headed by older people will more than double from 54,000 to 169,000. 

About half a million people over 65 will have some form of disability, and it is estimated that 325,000 people over 65 will be reliant on public transport.

Regulatory Reform Programme

The government, through our regulatory reform programme, is creating opportunities, security and prosperity for older people's housing options. 

Our focus is also on improving the regulatory environment: land supply, zoning, and building laws can all be barriers to developing affordable housing. 

Our changes to the Resource Management Act and Building Amendment Act (No 2) enable developers to obtain national building consents, saving time and costs for developers, which will flow onto consumers through lower prices.

Our review of building regulations is to ensure that buildings are built right first time, with certified building products and by quality trades people.

Taken together, all of these initiatives should ensure that there is appropriate housing for the ageing society.

Tenure options

I believe that New Zealand is well-placed to cater for this growing housing market. 

Older people already have a range of housing options:

They can stay in their family homes, living independently or downsize within the private market, with varying levels of nursing, personal and voluntary care

They can rent

They can buy into a retirement village

Or they can move into a rest home or hospital with a higher level of care.

You will hear later this morning from Australian academics about their research into older people's occupancy and the costs and benefits of remaining in the home.

I am in the process of reforming both New Zealand's residential tenancies laws and unit titles laws. 

The growing rental market means it's becoming increasingly important to ensure that our tenancy laws are up-to-date, unambiguous and fit for purpose.

The Residential Tenancies Amendment Bill enables landlords to manage their properties more effectively and to help ensure that tenants have access to stable, good quality accommodation. 

Key provisions in the Bill extend the Act's coverage to boarding house tenancies and some tenancies with a significant service component.

The current Unit Titles Act was passed in 1972, when the most common form of unit title was independent residential units on a common piece of land. 

Now, we have more unit title apartments and mixed title development blocks. 

These mixed title blocks may be a combination of retail and offices, or retail and apartments. 

The current law does not deal effectively with the mixed developments. 

I believe that urban and apartment living could be become very attractive for the next generations of older people. 

Moving into a mixed environment with residential, retail and entertainment could well prove to be attractive to the 65 to 80 year age group, and perhaps provide some competition to our existing retirement village industry.

Already 5% of the over 65s chose to live in retirement villages across New Zealand. 

Some of these villages provide limited services and facilities, whilst others are built around a central hub that includes community facilities such as gyms and swimming pools. 

Some villages have established choirs, music groups, arts and crafts groups and if all of this sounds geared to women - do not forget the men's sheds.

My colleague Maurice Williamson informs me that the retirement village industry is seeking to grow to cater for about 10% of the over 65 housing market. 

Design

This brings me to an important observation about New Zealand's Positive Ageing Strategy and our work on "ageing in place". 

"Place" may not mean the family home of 40 plus years, rather the community and neighbourhood around the family home. 

Older people are able to downsize their living space, without losing their established networks. 

Offering security in housing is not simply about tenure stability if you are an older renter - it is about stability of friendships, networks and professional services.

This is why this government's work on urban design and getting the governance structures for Auckland in place is so important. 

In my introduction, I noted that an estimated 325,000 older people would be reliant on public transport by 2050 and half a million will have some level of disability.

In March this year I announced where the winning design of the starter home competition would be built. 

The starter home competition was a challenge to architects and designers to encourage them to think about the untapped demand for smaller homes, including catering for an ageing population. 

Part of the competition's brief was to provide inspiration for the market and consumers to begin meeting that demand.

As Housing Minister I want to see the pressure on the housing market mitigated to allow New Zealanders better access to appropriate housing whether in the state or private sector.

Land supply, zoning, and building laws can all be barriers to developing affordable housing.

As Minister for Housing, I also have responsibility for ensuring that the housing supplied is fit for purpose. 

Housing stock

Part of government's approach includes our goal of retrofitting 180,000 homes over four years, with better insulation and clean heating to improve the energy efficiency of homes overseen by my colleague Gerry Brownlee.

Energy inefficiency is a drain on resources and for older people with a limited income, the decision to stay warm can be balanced against purchasing groceries. 

Whether they opt to keep warm rather than eat, or eat rather than keep warm, their health will decline.

Improving energy efficiency is a win-win for New Zealand and older New Zealanders!

Conclusion

I think we have real opportunities to provide appropriate housing solutions in the future. 

The purpose of today is not to think about what sort of accommodation we want our parents to live in, or even where we want to live in our later years, but what we want our children to live in when they are old. 

I hope you have a great day.