Will Australia’s Newest Generation Take Over the Property Market?

The country is outgrowing expectations and there is no sign of slowing down. Over the past 8 years our population growth rate has ranged from 1.49% to 1.67%, equating to almost 400,000 additional residents to the population each year. It was only mid-2018 when Australia’s population surpassed 25 million, a milestone met 33 years before expectations – now we are likely to hit 26 million within the next 18 months.

It doesn’t take an expert to recognise that Australia’s population is changing rapidly. It’s shaping the way that we live throughout all our major urban centres and capital cities. All you have to do is look around to see more traffic, more strain on public transport and urban sprawls of housing that reach further than ever before. So, why is this happening? There are a number of contributors; rising birth rate, longer life expectancy and a continuing growth of overseas migration. The next decade, however, may provide even more change than the last.

Just how drastically the face of Australia is changing cannot be more succinctly depicted than in the above graph. The breakdown is a depiction of Australia’s generations born from 1909 to 2019. Surprisingly, Millennials presently make up the largest share with 24% of the population. As the graph shows, we are expecting to see our population grow by another 4 million in just 10 years. This increase will be off the back of the newly inducted Generation Z as well as overseas migration. By 2029, Generation Z will make up almost a quarter of Australia’s population.

Most importantly Millennials, Gen Z and our newest generation will make up over 64% of the country. Our country will begin to shrink in average age and Baby Boomers will become a minority population. All of this in just 10 years.

Why is it important to understand Australia’s’ generations?

More young Australians than ever are shifting towards apartment and townhouse living. Whether out of preference, convenience, or lifestyle this shift is no coincidence. Younger buyers are valuing access to education and employment more than ever. The old Australian Dream of the quarter acre block is dwindling throughout this population. Over the next decade, it is obvious that these types of tenants and property owners will make up a large portion of the residential market and this trend will continue. As a result, demand for well places, high quality density projects will be bolstered.

We have seen a generational shift in the market for apartment living. We will likely see a continued escalation in market demand from this demographic for years to come.

*source BlueWealth Property

Posted in Buy, Latest news, News on 27th August, 2019