Elderly care and housing demand in the EU

In the EU, the number of people over 75 is expected to double by 2050 and subsequently this ageing population’s proportion of total consumption will increase too.

Elderly people spend a larger part of their income on housing and health in comparison to younger people. Based on the eleven EU countries included in this research, we think that by 2030, EU-wide demand for care and housing for elderly people might potentially increase by 3.5% and 5.5%.

1. Demographic potential

Spain, Italy and Germany at the demographic top
Spain, Italy and Germany top the first list. Spain is the only one of the selected countries that scores above EU-average on both elderly population growth by 2050 and the proportion of the elderly relative to the population in 2050. Both in 2019 and 2050, Italy will have the largest number of elderly people as a proportion of the total population. In absolute figures, Germany will have the largest population of over 75s both in 2019 and in 2050.

2. Income potential

Austrians and French have highest income potential
The income potential of the elderly per country can be divided in three sub-divisions: the ‘Northwestern’ EU-countries lead the pack, with Austria and France at the top. They are followed at a distance by Italy and Spain. The three CEE-countries are at the bottom end. The expected economic progress and relatively high incomes of younger seniors mean that the average incomes of people aged 75+ in EU countries will probably grow the next decade.

3. Wealth potential

Wealth potential highest in the Netherlands and Belgium
The wealth potential is highest for the elderly of the Netherlands and Belgium. Dutch financial wealth is considerably higher than Belgian financial wealth because of higher (funded) pension accrual in the Netherlands.

4. Care and home support potential

Highest care and support potential in Belgium and Romania
Elderly people in Belgium and Romania pay a relatively large part of the costs of home support and care themselves. Furthermore, they relatively often see these expenses as essential and many seniors in Belgium and Romania consider consuming home support services that they must pay for. In the Eastern European countries, as well as in Italy, non-professional support and care (provided by relatives or friends) is of greater importance than professional care.

5. Senior housing potential

Housing potential highest among Dutch and Spanish elderly
By comparison, Dutch and Spanish seniors are most interested in housing options for the elderly. They are also most willing to pay for premium housing quality. A significant proportion of European elderly people is open to housing options that are tailored to the elderly, even in countries that use relatively little senior housing.

Overall ranking

Netherlands and Spain top the overall ranking
The Netherlands takes first place two times in the overall rankings: on the wealth of the elderly as well as on housing potential. The Netherlands' lowest result is on demographic potential, at sixth place. The Spanish are the runner-up. In addition to their first place on demography, Spain has a high potential demand for home support and elderly housing. With wealthy seniors who highly value care, home support and elderly housing, Belgium comes at third place. Austria, France and Germany are tied fifth in overall rankings.