Rising population affects investment choices
Australia’s population eclipsed the 24 million mark in February.
The pace of growth has been considerable: at the turn of the century, we weren’t expected to reach the 24m mark until 2033.
We’re likely to reach the 25 million mark in 2018, with estimates of another million every two to three years from thereon.
Between 2001 and 2010, Australia’s fertility rate rose from 1.7 to two babies. It represented a mini baby- boom, but was still below the peak period of 1960-61 where it reached 3.5 babies per woman. So what else contributed to the rise?
We are living longer; the life expectancy for women has risen to 84.4 years for women and 80.3 years for men. And net international migration has exceeded forecasts, contributing to Australia’s rich multiculturalism.
So what influence does this have on the housing market?
It creates pressure to continue to deliver a broad range of housing opportunities for the community – everything from one and two bedroom apartments, through to freestanding three and four bedroom family homes, and housing for retirement.
It’s important for investors to understand how population growth impacts different marketplaces. For instance, inner city markets attract higher proportions of younger individuals and professionals, while regional markets are popular among families and retirees.
Contact your local LJ Hooker office today to understand how you can capitalise on the rising population in your marketplace.