Australia is experiencing a baby boom.
While the term 'baby boom' often conjures memories of the post-war era, this current trend is not to be underestimated says demographer Simon Kuestenmacher in a recent article in The New Daily
There are implications for various sectors, including healthcare, education, and notably the property market.
This isn't just a marginal increase in births; it's substantial enough to be termed a 'boom' according to Kuestenmacher.
In 2022 Australia registered 301,000 births – that’s only four per cent below the all-time high of 2018, when we recorded 315,000 births.
The most common age bracket to give birth is now 30-34 but births in the 35-44 year age bracket are also on the rise.
This boom is not an isolated event; it is in the context of global shifts, with other countries like the United States also experiencing birth rate increases.
Our baby boom could be a result of various factors such as increased economic stability, social factors, or even government incentives for families.
When you break it down demographically, each age group might have different motivations for contributing to this trend.
For instance, Millennials might finally be hitting that stage of life where they're financially secure enough to start families, whereas older generations might be taking advantage of government incentives.
And this boom comes at a time when women our fertility rate is dropping.
“One reason why we have fewer kids is that we start families later in life – there just isn’t enough time left to make heaps of babies.
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A more highly educated female population (Australian women outperform men in primary, secondary, and tertiary education) and a much higher female workforce participation rate are also linked to smaller families.”
More births mean more families, and more families require more homes—it's simple math.
However, the type of homes and their locations could drastically affect the property market.
There will be a greater demand for family-friendly properties. Whether it's upsizing from a one-bedroom flat to a three-bedroom home in the suburbs or moving from an apartment to a townhouse, the property implications are vast.
Areas traditionally seen as 'young and trendy' might experience a shift as these young people become parents and seek out family-friendly environments - suburbs with good schools, healthcare facilities, and parks are likely to become hotspots.
And we’re likely to see increased demands in suburbs that offer a balance between work-life and amenities such as schools and parks.
Types of Property in Focus
- Townhouses and Villas: Smaller families may opt for compact living solutions, pushing up demand for townhouses and villas.
- Suburban Houses: Larger outdoor spaces and multiple rooms will make suburban houses a hot ticket item for bigger families.
- Multi-Generational Homes: The increasing acceptance of extended families living together could lead to a boom in multi-generational homes.
The cyclical effect of a baby boom can't be understated.
More babies mean more spending, not just on baby essentials but on bigger ticket items like cars and homes as families expand.
This, in turn, stimulates the economy and can push property prices higher due to increased demand.
Note: The surge in birth rates is more than just a statistic - it's a multi-faceted trend that touches on social change, economic repercussions, and, of course, the property market.
As property is a long-term investment, understanding these shifts is vital for making informed decisions.