10 things you must know about the future of housing


It was all doom and gloom in the lead up to the federal election and now, apparently, the housing market is set to improve, with some predicting another boom.


For mine nothing has really changed as the Australian housing market still faces the same range of issues.

10 Things Future Housing List

I like to number things, so here is my 10 things Future Housing list:

  1. Limited wage growth regardless of what the government says or the RBA does.
  2. The rise of ‘The Algorithm’, better tech and a move towards automation and robotics will also see rising under-unemployment and less full-time work.
  3. Most new jobs will be in service industries. Much of this work will service the local community, be part-time and also be low paying gigs.
  4. Low inflation is here to stay and disinflation is on the rise. Disinflation is when a Kit Kat is still $1 but is now 45g instead of 55g. Meanwhile, the cost of utilities, insurance and compliance are increasing and sharply.
  5. Rba‘Starting out’ (young renters + first home buyers) and ‘downsizers’ are the two major housing demand cohorts.
  6. More of us will cluster together – living/working in select urban locales – there are strong economic reasons behind this trend.
  7. Most new overseas migrants live in large family groups and are used to, even prefer, multi-generational housing.
  8. Housing affordability, is and will remain, low for most of the community.
  9. Limited generic capital gains and overall rental growth for the next five years, maybe longer.
  10. Investors will need to manufacture growth and positive rental yields will drive most investment decisions.

In summary, two incomes per household won’t cut it anymore.

Households will either move to a cheaper location or stay in the same area, but buy or rent a more compact dwelling.

Many, if not most, I believe will take in an extra person/s to help them make ends meet.

This applies to both owner occupied housing and also investments.

2 more things

1 . Rental growth is at a all time low

2. Household size is increasing not falling

Australian average household size
Estimated residents Occupied private dwellings Average household size
2001 18,769,249 7,072,202 2.65
2006 19,855,288 7,569,183 2.62
2011 21,507,717 7,760,320 2.77
2016 23,401,892 8,286,073 2.82
Matusik + ABS

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Michael is director of independent property advisory Matusik Property Insights. He is independent, perceptive and to the point; has helped over 550 new residential developments come to fruition and writes his insightful Matusik Missive

'10 things you must know about the future of housing' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts