Professional advisory firm Grant Thornton was commissioned by the Property Council of Australia to generate a report on unlocking the value of the family home when downsizing.

The report identified that currently 184,000 Australians live in retirement villages, or 5.7% of the over 65 population. Grant Thorton projects this number will increase to 7.5% of the over 65 population by 2025 – within 10 years.

This is an increase of 198,000 people. It means that 20,000 additional people will move into a retirement village each year which will require the building of approximately 15,000 new retirement village homes a year.

Currently the construction rate is 2,000 homes a year, meaning that there will be a significant shortfall in village homes, resulting in increased demand and increasing prices of retirement village homes as they are sold.

In March 2015 this is already evident with 70% of retirement villages having waiting lists.