Shifting demographic trends have been attracting a fair amount of attention in the media recently, something that all investors should be taking close note of.
I’ve found it interesting to note recently that the mainstream media in particular is starting to pick up on some of the evolving but dramatic changes in real estate trends.
I’ve talked about Australia’s ageing population before, and the fact that many developers are moving towards smaller-sized or multi-use dwellings, rather than the traditional big house on a big block of land.
It wasn’t too long ago that a four-bedroom house in the suburbs was the standard ‘Australian dream’, but a big family home doesn’t suit everyone any more. In fact, these types of homes increasingly suit fewer and fewer segments of the population.
The fastest-growing household size, according to a new report, is single-person households. These could be older Australians, who are living longer than ever before, or younger Australians who choose to live on their own.
“Single people, for example, are waiting longer to get married or enter into a long-term relationship,” says Professionals WA chief executive Shane Kempton in a recent media article.
As a result, certain property features are becoming more important to some buyers.
“Car parking and security features are very important when buying a home, because more single people are demanding higher levels of security, and these features can impact on the resale value of the property,” Shane says.
Are you actively considering Australia’s evolving demographic trends when reviewing your next investments?
Or do you truly believe that the big house on the big block will always have its market, so you’ll continue to build your portfolio with freestanding homes as opposed to smaller apartments and units? Would love to know where you stand on this, feel free to comment!
Til next time, happy investing!