Hawke's Bay has a housing crisis. Can retirement village developments ease it?

The James Wattie Retirement Village in Havelock North currently has 100 residents and will have more than 300 when it is complete. Photo / Warren Buckland

Massive retirement village developments in Hawke's Bay are making a "substantial" difference to the region's housing crisis, a report suggests.

The Jones Lang LaSalle report into retirement village and aged care development showed there were 20 villages in the region housing 1790 residents, 12.8 per cent of the 75+ population in Hawke's Bay.

But another 530 units are in the process of being built, and when they are, the houses the elderly previously lived in are then released to the property market for sale, Retirement Village Association executive director John Collyns says.

Collyns said according to their data, Summerset Palms in Te Awa is planning to build 257 units, James Wattie Retirement Village in Havelock North 161, Mary Doyle in Havelock North seven, Gracelands in Hastings 18, Willowbank in Meeanee 80 and Ascot Park in Taradale seven – a total of 530 units.

"There's no doubt that village construction makes a positive contribution to solving the housing crisis," Collyns said.

Nationally, 100 people move into a village each week and about 5500 homes are released back into the property market a year.

The Bupa Willowbank Reitrement Village in Meeanee is one of six villages in Hawke's Bay that is building new units. Photo / Paul Taylor

In Hawke's Bay, Collyns said if it is assumed every resident needs to sell their home to move into a village, then 530 new units will equal 530 homes on the market.

RVA figures show 10 per cent of existing village units are re-licenced each year, releasing a further 140 homes a year at about 10 per cent of the 1380 units in the region.

The 530 new units will take about three to four years to complete, so Collyns said that suggests 130 new units plus 140 re-licensed existing units equated to 270 homes released back into the market annually.

Ray White Hawke's Bay managing director Elanor MacDonald said retirement village construction makes a "substantial" difference to housing stock in the region.

When a new stage of a village comes up, they know as people on waitlists tend to want to list and sell their existing homes quickly.

"It makes a lot of difference and it is very noticeable. When the last Bupa stage came up, we saw a little influx of listings, same with Summerset."

The houses that become available when people move into retirement villages vary from family homes on large sections, well maintained but older homes that are good for first home buyers, small 'granny flats' and newer builds.

"They're coming in all shapes and sizes, which is lovely because it helps the whole cycle move."

During a shortage of construction workers, Collyns said many association members recruit and train apprentices, "so we are directly rectifying the skill shortage".

"Ultimately, they're all family homes whether they're part of a village or in the community. We see no differences between them in principle."

Ryman corporate affairs manager David King said Ryman had been planning for the expected increase in demographics in Hawke's Bay which gave them reason to build the James Wattie Retirement Village in Havelock North.

Building began in 2019 and there are currently 100 residents living there. When finished there will be more than 300 residents in townhouses, apartments and serviced apartments and residents in an 85-bed care centre.

There isn't yet a completion date, but development "is in full swing at the moment".