Housing for people with few or no assets

Published on 19th of February, 2024

When her landlord’s circumstances changed and Fraoch had to find a new place to live, she thought that the three months’ notice she’d been given would be ample.
“I must have visited eighty or ninety places,” she says. Often there were forty or fifty people turning up to a viewing. “People who are prepared to pay more can just walk in.” Those with accessibility needs or without an adequate income are shut out. Moreover, the quality of many of the places Fraoch visited was “awful, hellish.” She recalls: “A few times I only got as far as the driveway because I could see the state of the place. It really opened my eyes.”

Unable to find somewhere that was affordable and of reasonable quality, Fraoch stayed with friends for ten weeks, still looking, every day. She reflects that many people who own their home have no idea how hard it is to find somewhere if you are renting on a fixed income. “People don’t know if they haven’t had to do it.” Fraoch was delighted and relieved when a worker at Aged Concern spotted a unit she could apply for in Wesley Village. She took it and hasn’t looked back. 

Affordable housing care for older people in our community is urgently needed. It has become common to see retirement villages being constructed in our cities, but these are generally run on a business model that is too expensive for many. For those who don’t own a house that they can sell, buying into these villages is almost impossible. 
As home ownership declines, and our population ages, the options for those without assets are worryingly few. And this problem is set to grow: currently, a third of retirees are renting, but this number is expected to double by 2048. That’s about 600,000 people nationwide, many of whom will struggle in the private rental market. Superannuation alone is simply not enough for a comfortable life for older people who are renting. 

CMM approaches this challenge by offering a combination of independent and supported living options, and a pathway to rest home and hospital-level care when people need extra assistance. At Wesley Village, there are 26 studio units, 12 one-bedroom villas, 15 apartments and Whare Tiaki, providing supported independent living for eight kaumātua Māori. However, with the exception of Whare Tiaki which currently has vacancies, there is a waiting list of over 70 people. 

CMM is committed to ensuring that rents are affordable by setting the rate at not more than 80 percent of the market rent for similar properties. Rents are reviewed annually and increased only if necessary to meet operating costs.  In the Village there is a strong sense of community. Residents organise activities such as movie nights, board games, fish and chip dinners, and they publish a regular newsletter. There is also support from CMM staff when needed, including prepared meals, shopping trips, and pastoral care. CMM Housing Operations Manager Annie Smith comments that the sense of community is something that the residents create themselves. “They have their own system of looking after each other,” Annie says. “Wesley Village is affordable and social, and residents can have support from staff to help with independent living. It offers a different kind of living from the for-profit retirement village model.”

Executive Director, Jill Hawkey, agrees. “If older New Zealanders are to live comfortably and with dignity in their final years, regardless of their financial status, then we need an aged care system that works for everyone.”  Government funding is key, but for many years it has been inadequate. This has led to the closure of many smaller rest homes that offered an affordable pathway for retirees without financial assets. Jill stresses that governments must take a long-term view and address the significant and chronic underfunding of this sector. “These are our elders. They deserve respect and care right to the end of their lives.”

At Wesley Village, staff support residents in their transition to a less independent life when that time comes. WesleyCare, the rest home and hospital adjacent to the Village, operates on the basis of being as affordable as possible. While all rooms are Premium Rooms, with features over and above those required by national residential care standards, WesleyCare works hard to keep the Premium Room charge affordable and accommodates residents who are unable to pay the full cost.  

There is a close community relationship between Wesley Village and WesleyCare, with some of the Village residents volunteering at the rest home. Fraoch is one of those people. “I like to be in there, being active, looking after each other.” She reflects on her life in the Village. “I like the way everybody mixes together. Everyone’s included. The staff are brilliant and everyone feels that they’re valued.” She smiles. “I’m so pleased to be here.”

You can help CMM deliver suitable housing to older people with few or no assets. Visit www.mmsi.org.nz/Donate and select CMM’s Aged Care Fund from the drop-down menu.