Generation Y more comfortable with renting
Patterns for rental properties have been highlighted by a recent survey, which shows that there are ...
Patterns for rental properties have been highlighted by a recent survey, which shows that there are a number of emerging trends that could be extremely interesting to anyone looking into property investment for their future.
Louis Christopher, founder of SQM Research, stated that there were a number of trends that show some clear shifts in rental demographics across the nation.
For example, while the largest percentage of homes are still occupied by the traditional nuclear family (33 per cent), the childless, career-focused Generation Y are fast overtaking taking that position, weighing in at 30 per cent of the property market.
"Partly it’s generation Y delaying having kids until they’re in their 30s, so there’s now an extra decade where a couple doesn’t have children compared to older generations - and those young people are more likely to rent," said Mr Christopher in a September 23 statement.
This is a stark contrast to Gen Y's parents and grandparents, who were more likely to settle down with a home and family much sooner. Instead, Gen Y prefers the freedom and flexibility that comes with renting, rather than being tied down with assets like a house.
"While younger Australians are happy to rent, they’re not keen to put down roots and will on average move to a new rental property every 18 months or so," said Mr Christopher.
Any potential property investors considering buying a house for rental purposes would do well to take note of this. By purchasing property closer to the centre of capital cities, the opportunity of occupation increases as Gen Y begins to move towards the central business district for accommodation.
Furthermore, overseas migration is one of the responsible factors for helping the rental market grow, accounting for 60 per cent of the nation's overall annual growth.
"Net migration was around 400,000 people in the past 12 months - that’s two Darwin's each year. When new arrivals settle, they tend to gravitate towards middle and outer suburbs in capital cities, close to sought-after amenities and services, and they’ll almost certainly rent," said Mr Christopher.
However, the statement went on to detail that many migrants enter the rental market out of necessity rather than preference, and indicated that many aspire to own their own homes and will move as soon as possible.
These details could be extremely used for any potential property investment on the horizons of potential buyers, and could help to secure reliable, profitable tenants.