New data has revealed retirement units are significantly cheaper than housing in the same postcode.

The latest PwC Property Council Retirement Census shows the average price of a two-bedroom retirement unit is 43% cheaper than the median house price in the same suburb. It says that retirement villages offer an affordable solution in an unaffordable market with the average cost for a unit in a retirement village, at $559,000 compared to the $986,000 median house price in the same postcodes.

Retirement Living Council of Australia Executive Director Daniel Gannon says retirement villages are not just helping older Australians find affordable housing but also helping younger homebuyers by freeing up larger homes in the suburbs. But he says with the number of Australians aged over 75 to increase from 2 million to 3.4 million by 2040, more needs to be done to provide sufficient retirement living.

PwC Australia partner Funminiyi Oduko says affordability remains a key component of the industry which is facing rising construction costs and limited land supply.