The country's retirement village and aged care sector is struggling to meet demand, despite recent growth, a new report shows.
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The property management and investment firm JLL said a conservative estimate of future demand saw the need for an additional 24,500 units by 2033.
But it said the current pipeline for development, including those in early planning to those under construction, estimated there would be a shortfall of nearly 4000 units.
JLL head of research Gavin Read believed the industry could plug the gap if it sped up work but warned there were obstacles.
"Not only does the pace of construction need to increase, operators will have to overcome some significant constraints in the form of site availability, rising construction costs, a shortage of labour and materials and gaining consent approvals," Read said.
"Furthermore, it's worth remembering that this challenge is just to make up a shortfall based on current, conservative demand estimates. We reasonably expect the retirement village market to mature over the coming years to become more appealing to a broader mix of ethnicities; an evolution we believe could increase demand by a further 3200 units."
Read also added that with demand growing for intensified residential development in the main cities, operators may increasingly look to take advantage of improved transport infrastructure.
"We're already seeing operators build or landbank in areas served by the Waikato Expressway and Transmission Gully. As drive times decrease, or these areas become better served by public transport, they may become more desirable for elderly residents who want to enjoy life outside of the city but remain close enough to family," he said.