We all belong to one - a demographic tribe, that is.
In fact, Australia is one big country of many tribes.
If you don't belong to the one, you don't survive.
Some are easy to find: it might be your footy team or where you work, the way you vote, or the way you dress.
But there’s another set of tribes that are of interest to property investors and businesspeople - the tribes and labels that demographers divide us into.
Now I’m sure you’ve heard of Baby Boomers and Millennials, but have you heard of FIFOs or VESPAs, or the YOLO tribe?
And do you know what they mean and how understanding the demographic tribes can help you target your investments or business decisions?
That's what I'm going to discuss in today’s show with leading demographer Simon Kuestenmacher.
In my mind, demographics will drive our destiny, and over the long term, demographics are going to influence our property markets much more than the short-term ups and downs caused by inflation or interest rates.
For the last few years, I've regularly discussed demographic trends in this podcast with leading demographer Simon Kuestenmacher, but today I want to dig deeper into the different demographic tribes in Australia and the plethora of acronyms that come along with them.
Simon Kuestenmacher is a rising star globally in the field of data management and insight.
He is the Co-Founder of The Demographics Group and a columnist with The Australian and The New Daily newspapers.
In Australia, there are a number of demographic tribes that can be identified using acronyms to help us understand and classify these groups.
YOLO (You Only Live Once) Tribe: This tribe includes young, urban professionals who prioritize experiences and living in the moment over material possessions. They tend to be adventurous, spontaneous, and open to trying new things.
YUMMYs (Young Upwardly Mobile Millennials): YUMMYs are generally young adults between 25-35 years old who have started climbing up the career ladder and prefer living in urban areas close to city centres. YUMMYs typically prefer renting to buying as it allows them more flexibility and mobility without being tied down by a mortgage or location. For investors looking for high rental yields with fewer maintenance costs, properties located near city centres should be targeted towards YUMMYs.
MAMILs (Middle-Aged Men in Lycra): This term describes an increasingly common demographic group consisting of men aged 35 to 55 who ride bicycles as a hobby or form of exercise. These men are ideal candidates for rental properties located near popular cycling trails or bike lanes that offer easy access to recreational activities.
DINKs (Double Income No Kids) Tribe: This tribe includes couples who are financially successful and do not have children. They tend to have a high disposable income and enjoy travel, dining out, and other luxury experiences.
Yuppies- This term came around in the 1980s for (Y)oung (U)rban (P)rofessionals and describes someone who is young, possibly just out of university, and who has a high-paying job and an affluent lifestyle. Yuppies are usually the children of doctors and lawyers, hold master’s degrees from Ivy League universities, and are very concerned with their appearance.
Yuppies generally only hold political views that are considered trendy. Many yuppies go into fields such as politics, big business, public administration, medicine, and law.
Snag - It was cool to be a Sensitive New Age Guy in the 1990s
Wag - Wives and Girlfriends - notably of sporting stars.
Kippers - Kids in Parents Pockets Eroding Retirement Savings, in other words, adult children living with their parents.
Nettels - Not Enough Time To Enjoy Life - these are the very busy couples and families, usually found in the capital cities burdened with a large mortgage, a relatively expensive lifestyle, and a long working week – often with a long commute as well.
Twits - Teenage Women in their Thirties are women who behave like teenagers. Just like teens, they obsess over the latest trends.
Boomerang Kids - Generation Y are increasingly likely, once they have moved out of the home – to move back there again. Of Australians aged 25-29 who live in their parental home, more than half of these (54%) have moved out and returned again.
Indeed, many Gen Xers and Yers are returning to the parental home with their own young children in tow, according to demographer Mark McCrindle.
Silver Stylersn -These are the 7% of Australians aged over 65 who can be described as having a high net worth and are sophisticated, cosmopolitan retirees who are the antithesis of the traditional pensioner
Boomers (Baby Boomers) Tribe: This tribe includes people born between 1946 and 1964, who are now in their mid to late 50s to 70s. They tend to be financially stable and may be retired or nearing retirement. They may prioritize security and stability and may be more traditional in their values and beliefs.
Gen X (Generation X) Tribe: This tribe includes people born between 1965 and 1980, who are now in their mid-40s to 50s. They tend to be independent, self-reliant, and skeptical of authority. They may prioritize work-life balance and may be more socially and environmentally conscious.
Gen Y (Generation Y) Tribe: This tribe includes people born between 1981 and 1996, who are now in their mid-20s to 40s. They tend to be tech-savvy, open to change, and more likely to prioritize diversity and inclusion. They may also be more socially and environmentally conscious.
Gen Z (Generation Z) Tribe: This tribe includes people born between 1997 and 2012, who are now in their mid-teens to mid-20s. They tend to be digital natives, highly connected, and more diverse and socially conscious than previous generations. They may prioritize social and environmental issues and may be more open to alternative lifestyles and careers.
It's important to recognize that these demographic tribes are not rigid categories and many people may identify with multiple tribes or none at all.
This diversity enriches Australian culture and society and is an important part of what makes the country unique.
Additionally, these tribes are not exclusive to Australia, and similar groups can be found in other countries around the world.
Understanding these demographic tribes can help businesses and organizations to better target their marketing and outreach efforts, and to better understand the needs and preferences of different groups of consumers.
Australia is a diverse country with a wide range of demographic groups. Understanding these groups can help us to better understand the country's culture and society, as well as the challenges and opportunities faced by different populations.
Links and Resources
Simon Kuestenmacher - Director of The Demographics Group
Some of our favourite quotes from the show:
“It’s actually important to understand what motivates your team members.” – Michael Yardney
“People could fit into more than one of these categories, and I think this diversity really enriches our culture in Australia and our society.” – Michael Yardney
“Sure, bad things are going to happen to us. But rather than dwelling on them, it’s better to find a useful belief about them and move on.” – Michael Yardney
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