Spain, one of the countries with the highest life expectancies in the world, is facing a far-reaching demographic shift: it is estimated that by 2050, 30% of the population will be over the age of 65. This ageing of the population is already altering the balance between generations and calling the traditional housing model into question.

Aware of this challenge and of the impact it is already having on how people live in and manage housing, today we are sharing some solutions that can help adapt the market to this new reality and improve both the quality of the stock of residential property and the affordability of housing. Read on!

Four strategies to adapt the housing stock to demographic change

Responding to population ageing in the real estate sector means activating different levers that allow the residential stock to be adapted to new needs. From accessibility to shared living and tenure models, these are some of the lines of action that can make a real difference:

• Accessible and adaptable housing. The refurbishment of the existing residential stock is one of the most important levers for responding to demographic change. Beyond one-off interventions, it is necessary to promote comprehensive works on empty or ageing homes that improve their accessibility, efficiency and functionality, adapting them to the needs of a longer-living population and moving towards a stock with more accessible homes.
• Intergenerational housing models. Promoting models that facilitate coexistence between younger and older people is key to responding to new social and housing dynamics. These models combine private spaces with communal areas that foster community, mutual support and a reduction in undesired loneliness. They can also contribute to making better use of the existing stock and facilitate access to housing through more flexible formulas.
• New housing stock for older people. Developing public or privately led housing specifically designed for older people, such as the so-called senior living model, still at an early stage in Spain, is one of the keys to responding to the demographic challenge with structural solutions. The aim is to promote an adapted residential stock, with services such as laundry, catering or basic assistance, that supports autonomy and wellbeing while also strengthening the supply of adapted housing.
• Formulas for monetising housing during one’s lifetime. Extending alternatives such as reverse mortgages or life annuities allows older people to unlock the value of their home without having to sell it or leave it. These solutions provide additional liquidity that can be used to improve quality of life, meet age-related expenses or facilitate residential changes better suited to their needs.

Approaching housing from the perspective of longevity, through these and other solutions, not only makes it possible to respond to population ageing, but also to improve the overall functioning of the residential system, encouraging greater turnover and a bringing supply into line with demand. It also helps move towards a more balanced model, in which improving access to housing does not depend solely on generating new supply, but also on adapting and managing the existing stock more effectively and promoting accessible homes and adapted housing solutions.

Challenges and how to make it work in practice

Though these solutions offer great potential, their effective development still faces significant obstacles. The main challenges include difficulties in financing the refurbishment and adaptation of properties, as well as a still limited supply of adapted housing, affordable homes and alternative residential models. Added to this are regulatory frameworks that do not always move with sufficient agility, and the need to respond to very different territorial realities.

For these actions to bear fruit in practice, it will therefore be necessary to combine incentives for refurbishment, greater regulatory flexibility and closer collaboration between the public and private sectors. Another key will be to promote projects that can scale up, better mobilise the existing stock and develop responses tailored to the needs of each area, with the aim of strengthening the supply of affordable homes, expanding the adapted housing available and structurally improving access to housing.

Only through a comprehensive approach will it be possible to bring these solutions to the market effectively and turn them into a genuine response to demographic change. Beyond identifying new residential formulas, the challenge lies in creating the necessary conditions for them to be implemented with continuity, generate impact and contribute to a housing model adapted to an increasingly longer-lived society.