The profitability of companies like Arvida, Oceania and Ryman is generally credited to rising real estate values, and the fact that entry prices for units in retirement villages have now gone up to match real estate values generally.
Even though property prices overall have dipped in the past few months, they are still at the level they were a year ago and almost double what they were five years ago.
And the 15 percent drops in house prices that are sometimes quoted in the media generally refer to sales that vendors need or strongly want to make.
Optional sales often get put on hold when prices are weak.
Around 47,000 New Zealanders live in retirement villages. However, that still amounts to just 14 percent of the population of people over the age of 75.
Many of the most popular villages have long waiting lists, and that fact is expected to give unit prices in retirement villages a degree of buffer from the full impact of lower real estate prices in the community at large.