Hybrid housing models for older Australians: institutional framework and policy challenges

Abstract

Older people seeking affordable housing in the mainstream housing tenures such as home ownership, private renting and social housing face increasing difficulties in accessing and remaining in appropriate housing. The mainstream housing tenures face pressure due to widening housing affordability problems in home ownership and the private rental sector in many advanced economies, exacerbated by declining investment in social housing. Hybrid housing models are often promoted as affordable and sometimes appropriate and adequate housing options for older people. These models combine aspects of ownership and renting in diverse ways, often posing challenges for tenure-based housing policies. Drawing on the case of Australia, the paper presents the findings of an institutional review of the production, consumption, management, and exchange of land lease communities, often marketed as a more affordable form of housing for older people compared to the more established hybrid form of retirement villages. Noting difficulties in scoping the size and significance of the land lease community sector from current data collections, we find (a) entry of large institutional investors risks undermining the relative affordability of the sector for older people; (b) security of occupancy is a critical policy issue and (c) concentration in rural areas raises concerns around risk of natural disasters and access to aged care and other services. These issues are often overlooked in housing policy and pose challenges for other policy domains including income support, social care, and health services.