Background <p>Increasing in popularity, retirement living communities have the prospect for increased social connection to counteract loneliness, a major public health concern. This study investigated prevalence and factors associated with loneliness for older Australians in retirement communities.</p> Methods <p>A cross-sectional health and wellbeing survey, including the UCLA-3 Loneliness scale, was completed by 1,178 individuals aged ≥ 65 from retirement villages throughout Queensland and New South Wales, Australia in September 2021. Multivariable logistic regression modelling was utilised to determine modifiable resident characteristics associated with loneliness.</p> Results <p>Almost one-fifth (<i>n</i> = 229, 19.4%) were classified as lonely (UCLA-3 score = 6–9). Factors associated with loneliness were mood (often feeling sad or depressed) (OR = 6.13, <i>p</i> &lt; 0.001), living alone (OR = 2.86, <i>p</i> &lt; 0.001), not having someone to count on for help (sometimes having someone: OR = 2.85, <i>p</i> &lt; 0.001; never having someone: OR = 4.74, <i>p</i> &lt; 0.001), pain interfering with usual activities (OR = 2.18, <i>p</i> = 0.001), being admitted to hospital in the past year (1–2 times: OR = 1.59, <i>p</i> = 0.04, ≥ 3 times: OR = 2.3, <i>p</i> = 0.04), falls in past year (OR = 1.75, <i>p</i> = 0.01), memory problems (OR = 1.59, <i>p</i> = 0.03). Time residing in the village protected against loneliness, with individuals living there for one year or longer having half the odds of feeling lonely (OR = 0.49, <i>p</i> = 0.01) than those living there less than a year.</p> Conclusions <p>Findings suggest that both psychological and physical factors are associated with experiencing loneliness, in addition to increased susceptibility upon village entry. Identification of these factors permits co-design and implementation of targeted initiatives to support residents’ social wellbeing.</p> Clinical trial number <p>Not applicable.</p>