Older people are sleeping in their vehicles due to New Zealand's housing crisis.

Seniors are sleeping in their vehicles as the housing crisis bites those in their retirement years.

The Salvation Army is among groups that expect more elderly people will be living in their vehicles or on the street as the population ages and those without their own homes struggle to pay rents.

Salvation Army Social Housing national director Greg Foster said they recently housed an older man in Auckland who had been living in his truck for the past two years.

In Nelson, a supported living agency had to turn away two older men who had been living in their cars while they tried to find a house.

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Foster said there was a "huge need" for housing as people get older.

Their housing programme is focused on those aged 55 years and older, but the majority of their tenants were around 70.

"We're expecting a huge increase in homelessness among the 65 plus in the next 10 years. "There's going to be well over 1 million people over 65 by 2030."

Palinchak Mykhailo The increase in homelessness among older people was due to a combination of factors, including a tight, expensive rental market, less home ownership and a low disposable income.

The homelessness rise among older people was due to factors including a tight, expensive rental market, less home ownership and a low disposable income.

"It's not looking good. There's some serious demographic challenges blooming and it's going to be more common to see elderly living on the street."

The Salvation Army has 320 units for older people across New Zealand and they're currently building another 120 in Auckland.

"We have to build more social housing.

"It's not rocket science when you think home ownership rates are declining and a growing number of people are retiring, they don't have savings and there's no way you can survive on your own.

"We're sort of estimating that the Government would need to build [about] 3000 social housing units a year in order to meet the growing demand of over 65 plus."

Barry Mills, chairman of supported living facility Abbeyfield Nelson, said they had to turn away two men, who looked to be in their 60s, in the last year.

He said in both cases they were single men from out of town, living out of their car with no place to call home.

"We couldn't do anything for them because we didn't have any rooms vacant.

"Even if we did have a vacancy, we probably still couldn't take them because we have a process to go through and a waiting list."

He said Abbeyfield in Stoke had 12 rooms and the one in Nelson 11, which were both full, with about 16 people on a waiting list ready to move in.

Alden Williams/Fairfax NZ Stanley Crosswell, 80, was living out of his car in Nelson in 2015 because he couldn't afford to pay rent on his pension. After his plight was publicised he was offered accommodation.

Age Concern Nelson Tasman manager Caroline Budge said they got about one enquiry a week from somebody looking for a home.

"We definitely hear of people who are living in their cars or campervans. The lack of affordable housing for older people locally is an issue, we're definitely seeing it here."

Budge said many people came to Nelson because it was a nice place to retire, but some struggled to find adequate housing.

Habitat for Humanity is building three one bedroom units for older people at an affordable rent close to Nelson Hospital.

General manager Glenn Brewerton said they usually built homes for families with children, but changed tack on this project because they recognised affordable housing for older people was an issue.

"It's a big problem and it's going to become even bigger.

"We're making a very small dent in a very big problem."

He said the applications for the three homes had opened a few days ago to singles or couples who didn't have assets, with an estimated move in date of mid-September.

"It's for those that really can't help themselves, those who would otherwise potentially go live into a vehicle."

Habitat for Humanity New Zealand acting CEO Alan Thorp said the Nelson Habitat for Humanity building homes for elderly showed the importance of community groups who can respond to specific needs they see.

"We're hoping to work more closely with both local authorities and central government on addressing issues of housing adequacy within New Zealand."

Housing and Urban Development minister Phil Twyford said last year there was a "real need to provide decent, affordable tenure-secure housing for older New Zealanders".

"In Nelson, particularly, because of the rapidly ageing population."

The Ministry of Social Development (MSD) Housing Quarterly report showed the age group of over 65-year-olds represented about 9-10 per cent of all social housing applicants in the year to June.

In Nelson the number of applicants waiting for a home on the MSD housing register increased in the year to March 2018 from 53 to 100 and in Tasman district from 43 to 58.

Of those 100 applicants in Nelson, 67 were priority A, which are people considered "at risk" including a severe and persistent housing need that must be addressed immediately. In Tasman district, 44 of the 58 applicants were priority A, up from 27 in the December 2017 quarter.

In 2017 more than 100 people were on the waiting list for a Tasman District Council-owned pensioner unit.

The council had 101 mainly one-bedroom cottages across the district: 34 at Richmond, 45 at Motueka, four at Takaka, four at Murchison, seven at Wakefield and seven at Brightwater.

The waiting list last year stood at 104 with 65 at Richmond, 34 at Motueka and five for the other areas.