Australia’s ageing population is increasingly caught in a “care squeeze,” balancing the demands of caring for elderly loved ones while managing other responsibilities. For the 35% of Australians entering aged care who are renters, the absence of a family home to sell creates significant financial and logistical hurdles.
This issue was a key focus during The Conversation Hour with Richelle Hunt on 774 ABC Radio Melbourne, as part of their Care Squeeze initiative on 30 June 2025. Fiona York, Executive Officer at Housing for the Aged Action Group, shared critical insights into the barriers faced by older renters and proposed solutions to address housing insecurity.
The rise of renting in retirement
The rental market in Australia is changing, with more people renting for longer periods, and some for life. Fiona York highlighted this trend, stating, “We saw an over 70% increase in older renters in Victoria in 10 years, between 2011 and 2021.”
This is especially true for older women, who are “the fastest growing demographic of homelessness” and face heightened housing insecurity. For these renters, the traditional route into aged care, selling a family home to cover costs, is not an option.
York pointed out, “About 35% of people entering into the aged care system are renters. So what does that mean? And what happens if you don’t have an asset?”
The new Aged Care Act 2024, delayed from its original 1 July 2025 start to 1 November 2025 to allow more preparation time for providers and clients, aims to centre older people’s needs through a rights-based framework.
However, for renters, accessing these rights, particularly through the new Support at Home program, depends on having stable and affordable housing, a challenge many cannot overcome.
Barriers to ageing in place
The Support at Home program, replacing Home Care Packages and Short-Term Restorative Care from 1 November 2025, is designed to help 1.4 million Australians remain independent at home by 2035.
Yet, for renters, ageing in place is challenging. York explained, “To be able to receive support at home, you need to have stable housing, and we know that that’s not the case for a lot of older renters.”
Many rental properties, especially more affordable ones, are of poor quality, with issues like “rickety steps” or inaccessible bathrooms increasing risks of falls, leading to early hospital admissions or entry into residential aged care.
Landlord reluctance to allow home modifications, such as ramps or guardrails, adds further complexity. “Although landlords are not allowed to, under the law, refuse reasonable modifications, older renters that call us are really scared to ask for them because they fear an eviction notice or they fear a rent increase,” York said.
This lack of control over their living environment leaves renters vulnerable, unable to adapt their homes to meet care needs.
Affordability is a major issue. York noted, “Older renters are paying 60, 70%, 80% of their pension on the rent as it is. If they receive one rent increase, they fall into rent arrears and then they’re at risk of eviction.”
This financial pressure often forces renters to cancel essential in-home services, like meal delivery or cleaning, increasing their vulnerability.
The new Act’s means-tested co-contributions for non-clinical care, starting 1 November 2025, may add to these challenges for low-income renters, though transitional protections ensure existing Home Care Package recipients as of 12 September 2024 remain “no worse off.”
Challenges for marginalised communities
Older LGBTIQ+ renters face additional hurdles, with lower rates of home ownership and fears of discrimination in aged care settings. York stated, “There’s high numbers of older renters, low rates of home ownership, and yes, a real fear of institutionalisation in the aged care system.”
Rainbow Tick accreditation, which ensures aged care providers are inclusive, is vital but costly. “It’s expensive to get the rainbow tick too,” York noted, calling for greater incentives and awareness.
The new Act’s Statement of Rights aims to ensure equitable care, but effective implementation and provider accountability will be critical to addressing these concerns.
Solutions: Housing and policy reform
York advocated for increased investment in public and community housing to provide affordable, stable options for older renters.
“We would like to see a big injection of funding into public and community housing,” she said, highlighting that capped rents at 25-30% of income would enable renters to afford in-home care and delay entry into residential facilities.
She also proposed automatic financial hardship provisions for renters on the aged pension, recognising their financial strain under the new Act’s funding model.
Community-led solutions, such as co-housing or cooperative housing, show promise. York pointed to a housing complex for older women in Dayton, stating, “We’d like to see more support for those types of models, co-housing models, cooperative housing.”
These arrangements provide stable housing and address social isolation, a significant issue for renters who “can’t afford to go out” and become “very isolated at home.” Government support, such as shared equity schemes or cheaper loans, could make these models more accessible, enabling renters to pool resources and age in place with dignity.
Planning ahead for renters
For renters nearing retirement, early planning is essential. York advised, “If you’re eligible for public and community housing, get yourself on a waitlist. It does take a long time, but it’s good to plan ahead on these things.”
She also recommended exploring low-cost retirement options, such as independent living units or residential parks, and contacting advocacy groups like Housing for the Aged Action Group.
The new Act’s focus on education and advocacy, including registered supporters to assist with decision-making, aims to empower renters to navigate these systems.
Important reflections indeed!