OECD report highlights urgent need to adapt cities for ageing populations

A new OECD report titled Cities for All Ages underscores the pressing need for cities to adapt to significant demographic changes, especially the rapid ageing of urban populations. According to the report, while large metropolitan areas in OECD countries continue to attract younger residents, the share of people aged 65 and over is growing steadily, prompting a call for more inclusive urban policies.

Between 2000 and 2022, the proportion of older adults in cities increased across all OECD member states with available data. By 2040, the share of people aged 65 and over in urban areas is expected to rise from 20.9% to 27.9%. In response, the OECD outlines a comprehensive framework for governments to develop “age-inclusive” cities—urban environments that cater to the needs of all generations.

The report stresses that without age-inclusive planning, cities risk significant economic and social costs. These include increased healthcare expenses, reduced workforce participation, and growing social isolation. Older people, in particular, face challenges related to inaccessible infrastructure, unaffordable housing, and inadequate public transport, all of which can limit independence and well-being.

However, the report also highlights that adapting cities for ageing populations can create multiple benefits. Universal design in transport and public spaces, diversified housing options, and better digital access can promote both individual well-being and broader economic growth. For instance, investing in age-friendly urban design can reduce long-term healthcare costs, while reskilling older adults may address labour shortages and increase digital inclusion.

Drawing on best practices from cities worldwide, the report proposes a checklist of nine policy actions to help governments at all levels develop more inclusive urban environments. These actions include strategy setting, resource development, and stakeholder coordination—each aimed at promoting accessibility, housing security, economic opportunity, and intergenerational cohesion.

Examples cited in the report include Paris’s “15-minute city” model, co-housing initiatives for seniors in the United States, and digital health solutions in Barcelona. The report also calls for more integrated data collection and policy coordination to effectively meet the needs of all age groups.

Ultimately, the OECD concludes that cities that adapt now will be better positioned to address the twin challenges of demographic change and urbanisation, turning potential burdens into long-term strengths for sustainable, equitable, and inclusive growth.