Retirement Village Affordability in Australia 2026

Overview of Retirement Villages in Australia

Retirement villages provide housing designed for older Australians who often seek a community setting with varying levels of support. These villages typically consist of Independent Living Units (ILUs) where residents maintain a degree of independence but can access communal facilities and services.

Housing Costs Compared to General Property Market

In 2026, the median prices for units within retirement villages typically remain below the median cost of standard residential properties in nearby areas. Independent Living Units are often priced at approximately 59% of the local median house price nationally, according to recent analyses. This price difference can be attributed to factors such as location, the size and quality of units, and the inclusion of village amenities.

Fee Structures in Retirement Villages

Costs associated with retirement villages usually include three main types of fees: entry fees, ongoing fees, and exit fees. These fees vary considerably depending on the village provider, location, contract type, and included services.

Entry Fees

Entry fees are upfront payments made when entering a retirement village, typically granting a lease or licence to occupy a unit. These fees generally reflect the value of the unit and access to facilities within the village. In metropolitan areas or villages with extensive amenities, entry fees are usually higher.

Ongoing Fees

Ongoing fees are regularly charged, often weekly, to cover maintenance, administration, and communal services. These fees help manage village upkeep, gardens, shared facilities, and support services where provided. It is important to note that ongoing fees can vary widely depending on village size, facilities, and included services.

Exit Fees and Refunds

Exit fees, sometimes referred to as deferred management fees (DMFs), are amounts deducted from the refund residents receive when they leave the village. The percentage of the entry fee withheld depends on the length of residency and the specific terms outlined in the contract. Refund timeframes and refurbishment obligations of the unit can also affect the net amount returned to the resident or their estate.

Contract Types and Legal Considerations

Retirement village contracts can be complex and may vary between states and territories. Common contract types include leasehold, licence, or freehold arrangements, each with different rights and obligations. Australian states have specific legislation regulating retirement villages to protect residents’ rights and ensure clear information is provided about fees, terms, and conditions.

Pension and Financial Implications

Entry and ongoing fees may impact eligibility for Commonwealth income support payments such as the Age Pension. The financial treatment of retirement village fees can differ depending on their classification (e.g., lump sum or ongoing charges) under Centrelink rules.

Typical Costs in Australia (2026)

When considering retirement village living in Australia, typical price ranges include:

• Basic option: Around AUD 150,000 to AUD 300,000 – often found in regional or rural villages offering simple accommodation and limited facilities.
• Standard option: Approximately AUD 300,000 to AUD 600,000 – includes a range of unit sizes with access to common community areas and some services.
• Premium option: Typically AUD 600,000 to over AUD 1 million – generally located in metropolitan areas, featuring high-quality finishes and additional amenities such as gyms, cafés, and social programs.

Ongoing weekly fees typically range from AUD 150 to AUD 500 depending on the village and services provided.

Exit fees or DMFs can be up to 30% or more of the entry fee, usually applied progressively based on residency duration.

Summary

Retirement village living in Australia in 2026 involves consideration of multiple cost factors including entry fees, ongoing charges, exit fees, and potential pension implications. Costs vary significantly according to location, unit type, and village facilities. Understanding contractual terms and state-specific regulations is essential for accurate financial planning related to retirement housing options.