Reasons property values increase in the long term - Demographics

Demographics, which describes the composition of a population including population growth, structure, migration patterns, and income growth.

These factors are significant drivers of what types of properties are in demand and how property is priced.

That’s because the demographics of a population determine not just how many people there are, but how and where they want to live.

So it’s not really about population growth as much as it is about household formation which is the key here.

And immigration flows into this as well.

Australia’s immigration policy of selecting skilled workers at the family formation stage of their lives is a significant driving factor for our housing markets, as is our education system importing hundreds of thousands of international students.

Of course, Covid caused a structural-demographic change that will affect our housing markets moving forward.

Not only has the pandemic-induced work-from-home movement changed demographics significantly – but as many workers are able to work from the comfort of their own homes and save on commuting, this means they need the extra space.

The importance of the neighbourhood was reinforced.

For many it’s all about ‘living locally’ – having the ability to meet most of your everyday needs within a 20-minute walk, cycle, or local public transport trip of your home.

RealRenta has all the tools that a property manager has but for less than ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property.

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Jason Gwerder
Tuesday, 12 September 2023

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