Stuff worth knowing | Future Housing Demand

Here are my three tables of base case numbers regarding future housing demand by lifecycle segmentation.

Table 1 outlines my segmentation of the Australian population by lifecycle age groups.Lifestyle segmentation
Table 2 shows the size of the Australian population by lifecycle segment for June 2020 and what is estimated to happen in mid-2025.

Lifestyle segmentation

The actual population count might be less in 2025 – due to current restrictions on overseas travel and hence net overseas migration – but the distribution of the population by age group in 2025 is unlikely to change that much from the current forecast. Houses Of Different Size With Different Value On Stacks Of Coins. Concept Of Property, Mortgage And Real Estate Investment.

Table 3 shows the annual population growth by lifecycle segment over the next five years the average household size by lifecycle segment (as of 2019) and an estimated annual need for new dwellings by each lifecycle group between 2020 and 2025.

Forecast demand

Sadly, whilst some aren’t, most children are obviously housed with adults, so their numbers (as shown in table 2) are encompassed in the other lifecycle segments.

Again, the actual volumes might be lower – due to Covid again – by the annual housing demand distribution as shown in table 3 isn’t likely to change that much.

Putting Covid’s current impact aside – however, I do, think that assuming vaccines work etc., the present federal government will boost overseas migration to backfill any population intake shortfall experienced in 2020 to 2021 – there is an underlying need to build about 142,500 new dwellings across Australia each year between 2020 and 2025.

And over the next five years, much of Australia’s new housing demand is very likely to take place across three lifecycle segments being – retirees, families and first home buyers. Revisit table 3.

It is little wonder that HomeBuilder has hit the mark.



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Michael Matusik


Michael is director of independent property advisory Matusik Property Insights. He is independent, perceptive and to the point; has helped over 550 new residential developments come to fruition and writes his insightful Matusik Missive

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