The question of how demographics will affect the future of the property market has long been debated. It’s the Baby Boomers in particular that are causing most of this concern, with the belief that as they all move into retirement they will downsize en masse, creating a flood of homes on the property market and subsequently force house sales and prices down.
Contrary to this belief, many economists and demographers believe quite the opposite will occur in house sales thanks to Australia’s rising population due to increased birth rates and immigration in the property market. This is expected to drive a rise in demand for investment property sales regardless of what the Baby Boomers do with their homes.
By 2026, it’s estimated the number of retirees in the property market will only increase by two million while the non-retiree population of Australia will top 3.7 million people – all of whom will require homes, creating opportunities for real estate investment sales.
Regardless of whether they rent or buy, we will have to build dwellings to house these people. BIS Shrapnel concludes around three million new homes will have to be added to current housing stock over the next 15 years, which is good news for real estate investment sales.
Despite the pressure this may put on our construction industry, it is great news for property investors! Read more about investment property sales in the property market in our Articles section.
Want to know more about how demographics will influence house sales? Contact our team of Property Investment Specialists to talk about the property market today.
DISCLAIMER: This information is of a general nature only and does not constitute professional advice. We strongly recommend that you seek your own professional advice in relation to your particular circumstances.