The Aged Care Sector is Changing and Design Matters More than Ever

There’s a lot happening around aged care right now. Taken individually, these changes might seem incremental:

• Federal funding changes.
• SEPP reforms.
• The direction of NCC2027.
• The proposed Building Bill changes.

But together, they point to something bigger: aged care is increasingly being treated not just as a health sector issue, but as part of Australia’s broader housing and infrastructure conversation.

That has major implications for developers, operators and project teams.

From an architectural perspective, the biggest shift we’re seeing is that the old institutional model is becoming harder to justify – commercially, operationally and socially.

The projects getting attention now are the ones that feel connected to their neighbourhoods, and communities, prioritise resident experience and operate more like hospitality or residential environments than healthcare facilities.

That changes the design conversation completely.

Things that were once considered “nice to have” are becoming fundamental: natural light and ventilation to communal spaces, intuitive wayfinding and sensory prompting, stronger connections to landscape, greater resident choice and autonomy, better staff environments, adaptable room layouts, and buildings that can evolve over time as care models change.

These are no longer purely architectural aspirations. They directly affect occupancy, staffing, perception and long-term asset performance.

At the same time, pressure on delivery continues to increase.

The Federal Budget has reinforced the need for more aged care accommodation and greater housing supply generally, but projects are becoming increasingly difficult to make financially viable. Construction costs remain high, approval pathways are complex and compliance requirements continue to grow.

That’s why the NCC2027 discussion feels so important.

The industry is clearly moving toward stronger sustainability, accessibility and resilience requirements. Most would agree these are positive outcomes, but they also raise genuine viability questions.

How do we deliver higher-performing buildings without making projects financially impossible to build?

That challenge can’t be solved at DA or documentation stage. It needs to be addressed much earlier through smarter planning, stronger consultant coordination and more integrated design thinking.

The Building Bill reforms are also pushing the industry toward earlier accountability and more rigorous project coordination.

For architects, that means thinking beyond form-making.

The projects that succeed over the next decade will likely be the ones that integrate operations, construction methodology, prefabrication opportunities, staging, environmental constraints and long-term maintenance planning well before construction begins on site.

There’s also an interesting shift occurring in how aged care developments are viewed within the planning system.

Historically, many facilities were treated almost as isolated health buildings. Increasingly, they’re being assessed as part of the housing and urban renewal landscape – particularly around density, public domain contribution and neighbourhood integration.

That creates both opportunity and pressure.

The sector needs more supply, but communities also expect better designed buildings that contribute positively to their surroundings.

This is where architecture can add real value – not through iconic gestures or expensive finishes, but through solving complex problems clearly: making buildings feel more intimate and home-like rather than institutional, improving legibility and wayfinding, bringing daylight deeper into plans to support connection and wellbeing, creating dignity within care environments, and balancing operational efficiency with resident experience.

The next generation of aged care projects will likely look very different from the last.

And the developers who understand design as part of the commercial and operational strategy – not just the approval process – will likely be the ones best positioned moving forward.