More elderly people are living in cars or couch surfing as they can't afford to rent. Photo / File
More elderly people are living in cars or couch surfing as they can't afford to rent. Photo / File
Elderly people are couch surfing, living in their cars, or staying in overcrowded homes with whānau as more people retire without owning a home and are trapped in a competitive rental market.
Social agencies say it’s a hidden crisis and those asking for help are the tip of the iceberg.The news comes after NZME reported on Saturday that some elderly were ‘’absolutely going hungry’' due to the high cost of living.
Age Concern Rotorua manager Rory O’Rourke said housing was an acute problem for the elderly and he knew of people who were ‘‘desperate’'.
“It is very, very stressful and if you are trying to survive on superannuation you haven’t got a dog’s show. We have got people living in vans and living in cars.”
“We recently had two members who had to move because the landlord decided to sell and now they have nowhere to go.”
O’Rourke said he was aware of people aged 65 and over who were living in emergency housing in Rotorua.
The number of people retiring without a freehold home was also increasing.
Age Concern was always being approached about the issue and while it was not part of its core services, it was in the process of setting up a pocket neighbourhood with three tiny homes. It had also fielded a temporary offer of land.
Those houses would be rented to members for $100 a week and expressions of interest were high.
It wanted to encourage people to stay in their own homes for as long as they could. Age Concern was helping to do this by offering discounted house maintenance at $20 an hour.
That service, which came to fruition via funding and enabled Age Concern to hire a tradie, had gone ‘’bananas’'.
Ngati Uenukukopako leader Nireaha Pirika said it was concerned for its kaumatua who were paying high rents and the issue was “much bigger than we initially thought”.
It was hoping to start another housing development next year but “that is not going to help them at the moment”.
‘‘At 65, they should be looking at retiring ... but it is what it is. We can only do what we can and we’re trying very hard to push it (development) along.’'
However, he acknowledged it would need Government support and Ngati Uenukukopako was already working in the housing space.
He said about 10 kaumatua were already living in established papakāinga housing after it identified they were living in overcrowded conditions.
Pirika also encouraged kaumatua to reach out as it had the ability to assist them to see what entitlements they were eligible for from ministry departments.
“But we can’t help them if they don’t come forward.”
The iwi was also building 15 new Lockwood Homes on Te Ngae Rd.
Rotorua Rentals owner Pauline Evans. Photo / NZME
Rotorua Rentals director Pauline Evans said it had been ‘’seriously concerned about the over-65s for some time’'.
‘’Covid and the cost of living increases have only compounded the issues that this sector face. For some being on a limited benefit, superannuation appears that this is the only entitlement they can apply for, even though many of our older tenants have been workers their entire lives.’’
‘’The situation of supply and demand is still highlighting to us the shortage in housing.’’
Rents were still trending upward although some owners were happy to negotiate rents for the right tenant.
However, some one-bedroom and two-bedroom units were being rented from $400 upwards.
The latest data from Trade Me reveals the median weekly rent last month in Rotorua was $540, up 10 per cent year-on-year.
Rotorua Budget Advisory Service manager Pakanui Tuhura said most of the 65-plus generations were brought up to be self-sufficient and practical and pride often stopped them from reaching out.
‘’They have already made nearly all the cuts in their spending they are able to but still not able to make ends meet on superannuation income. I definitely think that the people we have seen are the tip of the iceberg.’’
Commissioned research by the Retirement Commission showed that homeownership rates for people in their 60s fell from 87 per cent in 1986 to 80 per cent in 2018 - meaning one in five were still paying off a mortgage.
Retirement Commission policy director Dr Suzy Morrissey. Photo / Supplied
Te Ara Ahunga Ora Director Policy, Dr Suzy Morrissey said housing costs were soaking up a large chunk of income for those in that age bracket still making mortgage payments.
Eighty per cent were spending more than 40 per cent of their NZ Super on housing, and more than half were spending more than 80 per cent of the pension payment on housing.
“It’s a real challenge for people to make ends meet if they are having to use substantial amounts of their NZ Super to cover housing costs,” Morrissey said.
“When NZ Super was introduced, it was with the underlying assumption that those accessing it would be mortgage-free homeowners.
“Today, the reality is very different. There are declining homeownership rates, more people needing to continue working longer because they still have mortgages to pay, are paying rent, or haven’t been able to save enough to retire.”
Ministry for Social Development information shows that, depending on where you live, the maximum accommodation supplement for a single person on superannuation ranges from $70 to $165 a week, or $80 to $235 for a couple.
A single person on superannuation was entitled to $462.94 a week after tax while it was $356.11 each for a couple.
Rotorua resident John Newton said earlier this month at a public meeting about the Government’s plans to build 350 new homes at Ngongotahā there were families moving into caravans around marae because there were no homes.
Ministry for Social Development Bay of Plenty regional commissioner Mike Bryant said it could be very stressful for people struggling to find a home.
However, across the Bay of Plenty the number of primary clients aged over 65 in emergency housing continues to decline.
‘’In every part of the region, our most recent data either records no primary clients aged over 65 in emergency housing, or the number has been suppressed because it was so low it could risk identifying an individual client and breaching their privacy.’’
Bryant said it was good there were housing options designed to be suitable for older people.
‘’Some of the people who come to us for help have complex needs, including health issues and disabilities. Age is considered when we assess housing suitability, accessibility, adequacy and sustainability.’’
According to the housing register, there were 891 applicants on the waiting list in Rotorua in the December quarter last year, compared to 975 over the same timeframes in 2021.
Nationally those aged 65 years and over on the register had risen to 2331 compared to 2247.
Those in emergency, social and public housing paid 25 per cent of their income or benefit in rent.
