The trend to more people living alone
means even more accommodation will be
needed in the future. Why not become one
of the providers?
A huge rise in the number of people living
alone in the next twenty years is predicted
by the Australian Bureau of Statistics,
with single-person households expected
to grow by 1.7 million over this period.
What this means is that ever more houses
will be needed, with smaller-sized accommodation
set to be in strong demand.
It is common knowledge that Australia
is undergoing major demographic changes.
One clear trend is that we have a population
that is both growing and aging. Due to
our aging population we are seeing an
increase in single person households,
and as our population grows, the overall
number of households required will increase
as well.
Over the last fifty years, the most common
type of household has been the ‘nuclear
family,’ in other words, a couple
and their children living in a suburban
home. However, as KPMG demographer Bernard
Salt notes, “Mum, dad and the kids
are down to one household in five. Over
50 years the shift has been quite profound.”
Couples with no children are also set
to outnumber families by 2031.
Other demographic factors besides the
aging population contributing to the trend
to smaller homes include:
- A steady decline in marriage rates.
- Increased divorce rates.
- An increase in two person households.
- Changes in community attitudes and
social expectations.
- The decline in women under 30 having
children.
- The property price barrier for young
adults.
What do these demographic shifts mean
for you as a prospective investor? For
a start, the demand for new homes will
increase. The property market landscape
will also change as fewer people will
need the large living spaces designed
to suit the typical Australian family.
There will be increased demand for smaller
residences such as semi-detached homes,
units, townhouses, and studio apartments.
These types of properties are typically
more affordable as investment properties
as they require less capital outlay.
For investors it’s good news that
so many more people will join the search
for a home, and there are ways to benefit
from this projection. The key lies in
timing, and the investors who read the
signs early and act on these trends, will
benefit the most in the long run. In a
market where demand outweighs supply,
the benefits are with the suppliers, i.e.
the landlords who move earliest.
In a housing market that is already over
170,000 properties short in terms of meeting
demand, the trend to single person households
will further increase this shortfall into
the future. Will you be one of the far-sighted
investors to take advantage of these demographic
changes?
If you would like to learn more and discuss
how McCarthy Group can assist you, click
here. |
