Part three of the McCrindle demographic study looks into the changing of the guard in terms of Australian generations. From 2019, there will be more Australians born since 1980, than before 1980. This study acknowledges the change with Generation Y (born 1980 to 1994), Generation Z (born 1995 to 2009) and Generation Alpha (born since 2010) as they become the dominate generations of our population.
This will see Generation Y beginning to dominate as workers, consumers, new household formers and will therefore emerge as the key demographic to engage with.
From a property perspective, if Generation Y is now the dominant age group we need to understand the needs and wants of the Gen Yers. Understanding what they desire will be key to identifying the type of property which will inherit the highest levels of demand.
We’re also consistently seeing a delay in the median marriage age for both men and women. Men are now getting married at 32 years of age and women at 31 years of age. In addition, the average age to move out of home is now 23 years old. That’s almost 9 years where someone is potentially living alone prior to marriage. It’s fair to assume and research suggests that Gen Yers are seeking low maintenance, more affordable (apartments) accommodation in desirable locations which provide them with café and restaurant culture and easy access to transport, education and employment.
Of course, we need to understand how the demographics are shifting in particular suburbs to determine the right property however, it’s fair to suggest that in years to come apartment accommodation is likely to become the suitable property type. Suitability and affordability will drive demand and in-turn result in an increase in prices.
Our approval of a project is largely reliant on how well the project meets the current demographic structure. Household sizes, occupation, median incomes, median ages and type of tenure are all considered prior to a project approval to ensure we meet the market with our recommendations. Meeting the market allows you to ensure you will be saleable if it ever comes time to sell the property.