Demographics will always drive our property markets and because of their sheer size and stage in the life cycle, no generation will shape Australia more during the 2020s than millennials.
According to leading demographer Simon Kuestenmacher, throughout the 2020s this generation of what he calls procrastinators will follow in the footsteps of every generation before them and enter the family-formation and home-buying stage.
Writing in the Australian, Kuestenmacher says millennials will leave their centrally located one or two-bedroom apartments and migrate to the suburbs or even regional centres in search of more bedrooms.
Millennials, born between 1982 and 1999 are now aged 21 to 38, and they will be 31 to 48 by 2030.
As they move into the family formation stage of their lives they’ll want more space, an additional bedroom or two to bring up their kids and the ability to work from home – at least occasionally.
There is little doubt that millennial knowledge workers will be working from home much more regularly in the future.
They will also value their neighbourhood – wanting to live in a “20 minute neighbourhood” where everything is within a short walk drive or cycle from their home.
As millennials move into the suburbs, who will move into to the inner-city apartments left behind?
You’d think it would be Gen Z.
The problem is that the Zs, who should take their place are a much smaller generation than the millennials and, with lower migration intake because of the coronavirus during the next few years, inner-city properties will stagnate or fall in value.
As a property investor, it’s important to understand how changing demographics will alter the requirement for housing moving forward.
And it will be equally important to own the type of property that will be in continuous strong demand by affluent owner occupiers.
This will not only push up the value of the your property but will ensure that you obtain tenants who are more affluent and renting for lifestyle reasons rather than because they can’t afford to own properties.
Having the right type of tenant will ensure your rental income will increase over time.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re wondering what’s ahead for property you are not alone.
You can trust the team at Metropole to provide you with direction, guidance and results.
In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
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- Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
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