Editorial: Age-old problem needs a rethink

Greerton retirees Jim and Val Carruthers say they are not surprised to hear of the Bay's aged population boom. Photo/George Novak

The Bay's civic leaders assure us they will be prepared for a major shift in the demographics of our region.

It's a daunting task.

Yesterday, the Bay of Plenty Times reported on predictions that one third of the city's population will be over the age of 65 in less than 20 years.

A new report estimates the city's population will grow by 37 per cent to a projected 161,646 by the year 2033 and 71 per cent of that growth will be people over the age of 65.

In contrast, those aged 15-39 years will make up just 4.4 per cent of the population growth, while 23 per cent would be people between 40 and 64 years, according to the data.

The ageing population trend is similar in the remainder of the Western Bay and local authorities have been warned that the shift could result in a declining rates base.

Tauranga Mayor Stuart Crosby says the council has asked Waikato University for ideas to help attract a broader population base.

The problem is, given that this is a world-wide trend, other cities will be attempting to do tackle the same problem.

The Bay has a great lifestyle but that alone will not counter-balance the projected population change. The city also has to offer affordable housing and competitive wage rates.

While housing in the Bay is more affordable than in some of the other main centres, Auckland in particular, concerns are mounting for struggling families trying to get their first home.

On Saturday, we reported that the latest Roost home-loan affordability figures show Tauranga affordability improved from 60.7 per cent in March to 56.3 per cent in April, compared with 51.4 per cent a year ago.

But, as Craigs Investment Partners head of private wealth research Mark Lister says, incomes are lower than other areas and the cost of housing is still on the high side compared to wages.

Addressing this issue would go a long way towards making the Western Bay an attractive place to live and work for young people.