When planning care for an ageing parent or loved one, cost is often one of the biggest deciding factors. You want to ensure they’re safe, supported, and comfortable—but it also needs to be financially sustainable. In this guide, we’ll compare the cost of retirement villages vs home care in New Zealand, looking at which option offers better value for your whānau. Whether you’re leaning toward home care or a retirement village, understanding the full financial picture is key.
What Do Retirement Villages Cost in New Zealand?
Most retirement villages in NZ operate under an Occupation Right Agreement (ORA). This means you don’t “own” the home, but instead pay for the right to occupy it.
🔹 Typical Costs:
- Entry Fee (ORA): $400,000 – $800,000+ (depending on region and unit type)
- Weekly Village Fees: $130 – $200/week
- Deferred Management Fee (DMF): Usually 20%–30% of the purchase price, deducted when you leave
- Additional Services (e.g., care packages): Often extra
🔹 Hidden Costs:
- No capital gain on resale
- Refurbishment fees when vacating
- Exit costs may delay estate settlement
Learn more on the Retirement Commission website →www.retirement.govt.nz
What Does Home Care Cost in New Zealand?
Home care is typically charged by the hour, and the total cost depends on how much support your loved one needs. Services range from basic housekeeping to full 24/7 care.
🔹 Typical Costs:
- Hourly Rate (Private Pay): $35 – $55/hour
- Live-in/Overnight Support: ~$250 – $500/night depending on needs
- Weekly Packages: Many providers (like us) offer bundles—for example:
- Wellness visits (4 hrs/week): ~$190
- Morning or evening routines (10 hrs/week): ~$499
- Full-time care: $3,000 – $5,000+/week
- Wellness visits (4 hrs/week): ~$190
See our care package examples here →Visit Us
🔹 Government Subsidies:
Your loved one may qualify for subsidised home care if:
- They’re a NZ resident or citizen
- They’ve been assessed by a NASC (Needs Assessment Service Coordination) agency
- They meet income and health criteria
Check eligibility via Te Whatu Ora →
Or find a local NASC agency →
Side-by-Side Cost Comparison (Approximate)
| Feature | Retirement Village | Home Care |
| Upfront Cost | $400K–$800K+ (ORA) | $0 (unless modifying home) |
| Weekly Fees | $130–$200/week | Varies – from $190/week |
| Flexibility | Low (locked into ORA) | High (scale care up/down) |
| Capital Retention | None (DMF applies) | Yes (you retain your home asset) |
| Exit Costs | Yes (DMF, admin, repairs) | No exit fees |
| Customisation | Limited | Fully tailored to individual needs |
| Government Subsidy Eligible? | No (not for housing) | Yes (if assessed and approved) |
Figures vary by region and provider; always check the specifics with your provider or legal advisor.
Which Option Is More Affordable?
- If your loved one owns their home and only needs part-time support, home care is often the more cost-effective option—especially with subsidies.
- If they need round-the-clock care and prefer a social lifestyle, retirement villages can be an appealing but significantly more expensive choice.
But remember: cost is only one piece of the puzzle. Lifestyle preferences, health conditions, family support, and future needs should all be considered.
How Home Carers Helps Keep Costs Down
At Home Carers, we design care packages to fit your family’s budget and needs. We also:
- Help you navigate NASC assessments
- Offer flexible hours (from 2 hours to 24/7 care)
- Don’t charge exit fees or lock you into long contracts
- Offer support across New Zealand
Explore our services →Home Care Services
Get in touch to discuss pricing →Contact Us
Want Help Working Out the Numbers?
We can walk you through the cost of home care vs retirement village fees based on your location, family situation, and level of care needed.
👉 Book a free 30-minute consultation:www.homecarers.co.nz
👉 Contact Home Carers NZ: tel:+642108165630
