ccording to demographer Bernard Salt of KPMG, Australia is going to have an additional two million retirees in the coming decades.
There are currently 4.5 million baby boomers who were born between 1946 and 1964, equating to 20% of the Australian population. With the oldest baby boomer now turning 65, over the next five years 4.5 million people will be moving into the space now occupied by 2.5 million people.
Contrary to what some are suggesting, these baby boomers are not going to move into retirement homes. In fact it will probably be many years before they will move into retirement communities and that will only be if they are dragged there kicking and screaming.
While a few boomers will make a sea change or a tree change, the majority will want to remain in the locality where they currently live. They will want to be close to their friends and family and not have to change their hairdresser and doctor.
Yet they will be keen to move from their current homes to ones of similar size with modern amenities and more security. These will be apartments and townhouses
For years the baby boomers have defined our property markets and their housing preferences will continue to shape the markets.
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