Calls for bold collaboration to diversify Australia’s seniors living sector

Australia’s seniors living sector is entering a decisive decade. With an aging population, shifting consumer expectations and increasing pressure on national housing supply, the need for new models, stronger partnerships and long-term investment has never been clearer according to project and infrastructure experts at BDO. The sector is poised for significant growth; but only if operators, investors and governments work together with purpose.

The over 75 population is projected to rise sharply, with South Australia alone expecting a 64 per cent increase by 2040, putting unprecedented demand on age friendly housing and care integrated communities. At the same time, supply is constrained by planning bottlenecks, land shortages and capital pressures, creating a widening gap between what older Australians need and what the market currently delivers.

Recent policy shifts signal momentum for reform. South Australia’s declaration of retirement villages as “essential infrastructure” and the fast tracking of co-located retirement and aged care developments demonstrate the growing recognition of seniors living as a critical part of Australia’s housing, health and social systems.

John Burger from the project and infrastructure advisory team at global accounting and advisory firm, BDO, said Australia’s seniors living sector is “not just expanding, it’s transforming.”

“We’re seeing the emergence of a more flexible, wellness oriented and resident centric sector. Policy reform, demographic demand and investor interest are coming together to create a once-in-a-generation opportunity. To meet it, the industry must diversify its housing offerings, strengthen governance, and build deeper partnerships with government and capital providers. Collaboration is now the key to unlocking supply and delivering better outcomes for older Australians,” said Mr Burger.

Large‑scale operators (such as The Living Co., Levande and Baptistcare) are driving national consolidation, bringing operational scale, capital access and service innovation, while prompting important conversations about community character and resident choice.

Meanwhile, innovative living models are reshaping the market. Assisted living is expected to attract 200,000 Australians and contribute to a $150 billion market, while vertical villages, intergenerational precincts and land lease communities offer a spectrum of options that accommodate lifestyle preferences and affordability challenges.

Affordability remains a critical pressure point, with many older Australians facing diminishing access to appropriate rental accommodation. New partnership models that span government, superannuation funds and community housing providers will be essential to expanding affordable supply and supporting secure housing pathways for vulnerable groups.

Investor interest is also accelerating according to BDO. Superannuation funds, private equity and international capital providers are increasingly active, driving development of larger, more sophisticated seniors living projects. Operators demonstrating strong governance, transparent resident engagement and sustainable long-term growth models will be best positioned to attract this capital and scale with confidence.

BDO believes the next decade will be defined by innovation, partnership and leadership.

“Australia’s seniors living sector is a dynamic ecosystem that spans retirement villages, land lease communities, assisted living, aged care and emerging hybrid models. The organisations that plan early, invest in wellness, and collaborate constructively with policymakers will set the pace for the future,” Mr Burger said.

 

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For media enquiries:
Jane Ward
Senior Manager, Media
E: Jane.Ward@bdo.com.au
Ph: +61 7 3173 5424