Key takeaways
Australia will remain an attractive destination for migrants.
Despite the current political rhetoric, population growth will continue supporting housing demand, particularly in our major capital cities.
Homeownership will remain a major aspiration for Australians. Changing lifestyles and life stages will continue influencing the types of homes people want.
Housing shortages and infrastructure challenges will persist. Construction costs, development viability and population growth will continue putting pressure on housing supply.
Property markets will always move in cycles. Successful investors need a long-term strategy, financial buffers and the discipline to ride out uncertainty.
Understanding demographics will remain essential for successful investing. Investors who recognise enduring trends and choose quality properties in the right locations will be better positioned to build lasting wealth.
Australia is going to look very different in ten years' time.
We'll have millions more people, an older population, smaller households and technologies that will change how we work and live.
Our cities will evolve, new industries will emerge, and different governments will introduce policies that reshape our economy.
But after more than five decades of investing and watching Australia's property markets, I've learned something important...
While plenty changes, some of the most powerful forces shaping our future remain remarkably consistent.
And understanding what won't change can be just as valuable as anticipating what will.
You see, investors spend enormous amounts of time worrying about interest rates, government policies, emerging technologies and where property prices might be heading next.
Yet many forces that will determine Australia's future prosperity are already well established, regardless of who's in Canberra.
Leading demographer Simon Kuestenmacher and I have identified ten enduring trends that we believe every property investor, business owner and anyone planning their financial future should understand.
For weekly insights, subscribe to the Demographics Decoded podcast, where we will continue to explore these trends and their implications in greater detail.
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1. Australia will remain an attractive destination for migrants
Immigration will remain politically contentious, and governments will continue adjusting migration targets and visa requirements.
But there's an important difference between how many migrants Australia chooses to accept and how many people around the world want to live here.
Australia offers political stability, personal safety, quality education, good healthcare, employment opportunities and an enviable lifestyle.
As Simon explains:
"Australia offers a politically stable economy, personal safety, education, employment, healthcare, and we just have nice cities, nice lifestyles on offer."
Simon believes that while migration numbers will fluctuate, sustained low or zero migration would create significant economic challenges, particularly as our population ages and our workforce needs replenishing.
Note: For property investors, Australia's enduring appeal as a migration destination provides an important foundation for long-term housing demand, even though actual population growth will depend on government policy.
2. Most population growth will continue occurring in our major cities
Despite predictions that remote work and technology will encourage Australians to spread out across the country, our major cities will continue to attract most of the population growth.
Simon points out that around 80% of Australia's population growth over the past two decades has occurred in our five largest cities. And he expects this concentration to continue, with Australia's population potentially growing by 300,000 to 350,000 people annually.
Regional centres and lifestyle destinations will certainly attract residents, but without substantial government intervention to relocate employment and industries, the economic forces drawing people towards our capitals are unlikely to disappear.
Note: For investors, this reinforces the importance of understanding where population growth will occur, while recognising that some parts of our major cities will benefit considerably more than others.
3. People and businesses will continue clustering around opportunity
The work-from-home revolution encouraged predictions that proximity to employment centres would become less important.
But there's a reason major cities developed around concentrated employment hubs.
As Simon explains, knowledge-based industries benefit enormously from having businesses and professionals located close together. Bankers, accountants, lawyers, consultants and their clients become more productive when they can collaborate and exchange ideas.
These clustering benefits will remain powerful, even as technology makes remote working easier.
In fact, Simon remains optimistic about the long term importance of CBDs and office space, despite the challenges facing commercial property.
Note: For residential investors, this suggests that proximity to major employment hubs, established transport networks and economic activity will continue commanding a premium.
4. Australians will continue aspiring to home ownership
Housing affordability has deteriorated, younger Australians are buying later, and renting has become a longer-term reality for many households.
Yet Australians' desire to own their own home remains deeply embedded in our culture.
As Simon explains:
"We're not saying home ownership will go up. We're saying the desire for home ownership will remain beautifully high."
And there's a practical reason for this.
Home ownership has traditionally been one of Australia's most effective mechanisms for building wealth and providing financial security in retirement.
Renting may be manageable while earning a good income, but entering retirement without the security of a mortgage-free home can create significant financial pressure.
Simon describes home ownership as a protective layer against poverty in old age, which helps explain why declining ownership rates among younger generations are concerning.
It also means housing affordability will remain a major political issue, with governments continuing to introduce policies designed to help Australians achieve their home ownership aspirations.
5. Life stages will continue driving housing preferences
We hear plenty about the different attitudes of Baby Boomers, Generation X, Millennials and Generation Z.
But Simon believes life stages are even more important than generational differences when it comes to housing choices.
Consider Millennials, who were often described as apartment-loving city dwellers with little interest in traditional family homes.
In reality, many simply delayed marriage and having children, meaning they remained in apartments longer than previous generations.
As Simon explains:
"These generational values, how each generation lives their lives, they of course matter, but ultimately the life stage rules supreme."
When people form families, they generally want more bedrooms, additional living space and access to schools. As they age, convenience, accessibility and lower-maintenance living often become more important.
The timing of these transitions may change, but the underlying housing needs remain remarkably consistent.
Note: For investors, understanding the demographic composition of a suburb and how its residents' needs will evolve remains essential.
6. Australia will continue struggling to build enough housing
Australia's housing shortage has developed over decades, and I believe it will take many years to resolve.
Governments can announce ambitious housing targets, rezone land and encourage density, but most new housing is delivered by private developers who need projects to be financially viable.
If the expected selling price doesn't adequately cover land, construction, finance, taxes and development risk, projects simply won't proceed.
Simon points out that even substantial improvements in construction efficiency may have a relatively modest impact on final property prices because building costs represent only part of the total expense.
And developers operating on relatively thin margins face enormous risks when construction costs rise unexpectedly.
While planning reforms, lower costs and new building technologies can help, increasing housing supply at scale will remain challenging.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State October 13th 2026
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This suggests Australia's structural housing shortage is likely to persist, supporting demand for well-located established properties, although investors must still consider affordability, local demand and the price they pay.
7. Infrastructure will continue struggling to keep pace with population growth
One of Australia's enduring frustrations is that infrastructure often arrives years after communities need it.
New housing estates appear, thousands of families move in, and only then do governments seriously address the need for roads, rail services, schools and hospitals.
Simon believes this pattern will continue because politicians face enormous pressure to address existing infrastructure backlogs rather than invest in communities that haven't yet been built.
He contrasts Australia's approach with Munich, where transport infrastructure was extended into undeveloped areas decades ago, providing the framework for future population growth.
Tip: His advice when choosing property is particularly relevant: favour locations with existing infrastructure rather than relying heavily on projects that currently exist only on planning maps.
I agree.
At Metropole, while we consider future infrastructure and demographic trends, we prefer established amenities and proven demand over promises that may take decades to materialise.
8. Property and economic cycles will never disappear
Every generation seems to believe that something has fundamentally changed and the old economic rules may no longer apply.
Yet history shows that markets continue moving through cycles.
Property prices rise, growth slows, markets stagnate and occasionally decline. Interest rates fluctuate, credit availability changes, and consumer confidence moves between optimism and pessimism.
Simon believes these cycles are partly driven by our tendency to assume recent trends will continue indefinitely.
When prices rise, people expect further growth. When markets fall, pessimism becomes equally entrenched.
But changing economic conditions, government intervention, human behaviour and unexpected events continually reshape market conditions.
Better data and artificial intelligence may improve forecasting, but they won't eliminate economic cycles.
That's why successful investors need financial buffers, a long-term strategy and the discipline to avoid emotional decisions during uncertain periods.
The ability to hold quality assets through difficult conditions remains one of the most important advantages an investor can have.
9. Demographic differences will continue producing unequal outcomes
One of the biggest mistakes investors make is treating Australia as though it's one big property market.
National averages conceal enormous differences between cities, suburbs, households and generations.
As I see it, Australia is becoming increasingly diverse, both economically and demographically, with more households at the lower and higher ends of the income spectrum and growing pressure on the traditional middle class.
Age, cultural background, family structure, income and inherited wealth all influence how people live, spend and choose housing.
Note: For investors, this means understanding the financial capacity and housing preferences of future tenants and buyers is becoming increasingly important.
Two suburbs only a few kilometres apart can experience very different outcomes because their residents have different incomes, employment opportunities and household structures.
I believe this growing divergence will increasingly reward selective, research-driven investors rather than those simply following broad market trends.
10. Forecasts will continue to be wrong
Despite better data, sophisticated modelling and artificial intelligence, economists and market commentators will continue making forecasts that turn out to be incorrect.
And that includes demographic forecasts.
Simon explains that forecasts deal with probabilities rather than certainties.
"Demographic analysis does not take away uncertainty... but it allows us to make more informed decisions."
We can estimate how Australia's population will age with considerable confidence because most of the people who will be living here in ten years are already alive.
But unexpected events can change everything.
Simon points to COVID as an example of how an unforeseen event disrupted otherwise reasonable demographic projections.
The same uncertainty applies to artificial intelligence, geopolitical developments and future government decisions.
Tip: That's why investors should use forecasts to inform their decisions rather than treating them as guarantees.
A sound investment strategy considers the most likely outcomes while allowing for the possibility that events unfold differently.
The bottom line: Australia's future will change, but the fundamentals will endure
When I look towards Australia in 2036, I see a larger, older and more culturally diverse country, increasingly influenced by technology and changing household structures.
Our care economy will become more important, the divide between families with substantial assets and those without them may widen, and our cities will continue evolving.
But beneath these changes, the fundamental forces shaping Australian society will remain familiar.
People will continue seeking security, opportunity and a better quality of life. They'll want somewhere comfortable to live, make housing decisions based on their family circumstances and gravitate towards places offering employment, education and amenities.
Our major cities will remain important economic centres, housing supply will continue presenting challenges, and property markets will keep moving through cycles.
As Simon observes:
"The fundamentals of Australia, the fundamentals of human needs, they're not changing. They remain familiar."
For me, that's an encouraging message.
After more than five decades of investing, I've learned that building lasting wealth requires understanding both change and continuity.
You need to recognise emerging trends so you don't end up owning the wrong assets in the wrong locations, while also respecting the enduring forces that allow you to invest with long-term confidence.
That's the philosophy we follow at Metropole when helping our clients build, protect and pass on their wealth.
We focus on investment-grade properties in locations supported by strong demographic fundamentals, established infrastructure, employment opportunities and the types of housing Australians will continue wanting and needing.
And while nobody can predict precisely what Australia will look like in ten or twenty years, I remain optimistic about our long-term future.
We're fortunate to live in a country with strong institutions, considerable economic opportunities and an enviable quality of life. Those advantages have helped Australia prosper through numerous economic cycles, political changes and global disruptions.
The coming decade will undoubtedly bring challenges, but it will also create opportunities for investors who understand where our country is heading.
I believe the most successful investors will be those who recognise the changes that matter, understand the fundamentals that endure, and position themselves to benefit from both.
That's how lasting wealth will continue to be created in Australia.
