The difficult housing market is having an impact on rest homes and retirement villages.
Retirement Villages Association executive director John Collyns said some complexes have had vacancies for up to a year as prospective residents struggle to sell their own homes.
He said the slowdown means new residents are taking longer to move in and owners of retirement complexes are losing income because accommodation is empty.
Rooms and houses in some complexes are lying empty for up to a year.
Mr Collyns said 30% of rest homes and retirement villages have waiting lists while the others are suffering in the current property climate.
The property slump has comes at a time when the industry expects capacity to increase by 80% in the next five years, although Mr Collyns says some developments have been put on hold until the market picks up.
Mr Collyns said pensioners living in a village complex or rest home should be eligible for a rates rebate.
He says elderly people living solely off the benefit can access the $520 rebate if they live in their own home, but not if they live in a retirement village.
Mr Collyns says the discrepancy is grossly unfair.
He says he will be speaking with the government to try to resolve the situation.
Mr Collyns says a rebate for pensioners would only cost an extra $5 million a year.
