From 1997 – 2014, industry revenue has gone from $500 to $1.4bn, which equates to a 6.25% growth rate per annum.
BDO: Caravan, RV, and Accommodation Industry of Australia
The number of Australians aged 65 and over is anticipated to increase from 3 million in 2012 to 8 million in 2050.
The increase in retirees with limited assets who are on a full or part age pension should drive the demand for affordable housing in the next 25 years.
Financial Pressure on Retirees
Until at least 2054, almost 80% of Australians over 65 will receive a pension payment and are eligible for Commonwealth rent assistance.
Australian Government National Commission of Audit 2014
From January 1 2017, the threshold for full age pension will be increased. The government estimates that increasing the threshold will benefit 170,000 retired Australians. This will increase the demand for MHE housing from retirees allowing more people the opportunity to release equity.
Commonwealth Global Market Research
Cost of Living Pressures
The high and rising house prices increases the ability of retirees to release equity in their existing homes, move into an MHE community and to help manage their retirement years more comfortably.
Australia is considered one of the most unaffordable housing markets in the world.
The Federal Government’s Budget Situation
The government needs MHE supply to increase to help retirees fund their retirement. The more people that can release equity in their houses to at least part fund or fully fund their retirement, the better it should be for the economy.
Benefit Report, October 2014, Atchison 2014
Australian Recreational Vehicles growth in production 9.4%.
ABS Caravan Industry of Australia Ltd. 2014