You probably understand that the Real Estate market is constantly moving and changing. But have you ever sat back and taken a look at the bigger picture of how our lifestyle choices are moulding the future of the property market?
Let's take a closer look.
First of all, let's wind back the clock 40 years.
Back in the days of outdoor living, the most common household was a 3 bedroom small house on a large piece of land in a nice leafy street. This house type catered for most Australians; young couples, families right through to retirees. Less people rented and more people owned.
The great Australian dream was to get married (much younger), buy a house with a good patch of lawn and raise a family in that house.
I remember, years and years of backyard footy against the other kids down the street and having to constantly dodge the hills hoist to get to the try line, or hitting the ball for a six-and-out in our cricket grudge match...
Well, not really, i never hit a 6.
Either way, our lifestyle was lived outdoors, communication was face to face or over a landline phone. People were getting married much younger and marriages were actually lasting the test of time; divorce was taboo. Lifestyle goals were more simplistic as there wasn't a constant need to portray a false lifestyle. Plus there was a much larger population of people happy to live in regional areas of the country.
Fast forward to the present day and age.
The outdoor lifestyle is fading away and we are living on our screens. We live in an internet age where people obsess over reality television and lives are lived through social media and the image that is portrayed online. Big backyards aren't as vital anymore. Instead land values have soared through the roof and everyone is realising that those big blocks of land can be cut into smaller blocks of land for a quick profit. Our population is growing at such a rapid rate that it Melbourne is expected to grow by 800,000 people per year over the next 10 years. Immigration is driving population to our capital cities through the roof.
There are less couples, people are staying single for longer, studying twice as much and we are witnessing the strongest devotion to careers than there has ever been in the past. Divorce rates have skyrocketed, and people are happier to live alone. More people are renting and less people are owning.
So what does that mean?
Our lifestyle is changing and our household patterns are being affected. But are we adjusting accordingly?
Well, did you know the 2 most common property types in Australia are 2 bedroom apartments and 4 bedroom houses. Think about all the new development areas and new buildings that are going up and you will notice that nearly all of them are either 2 bedroom apartments or 4 bedroom houses.
Take a look at the image below.
Can you see the trend?
There are more and more people living independently, yet our most popular development market is still catering for 2-4 bedroom households.
Who is catering for the single person households or the larger families of 5 or more?
1 or more persons and 5 or more equate to 35% of the market that is being overlooked. Single person households are the fastest growing property market in Australia and overseas. Denmark records that 48% of it's population live in a lone household.
Our lifestyle changes that are making us more independent are encouraging more and more people to need a different property type. Affordable 1 bedroom housing options.
So where does that put us in the future?
We have 2 main points to share with you on the future of the property market.
There will be an even larger divide in housing moving forward.
1. Family houses will continue to get bigger and land sizes will continue to get smaller. An incredibly accelerated population growth is leading to increased density in all major cities. Those of us wanting to live in a house will all want the biggest and most luxurious house we can get and moving forward, most of them will entirely cover the land it is residing on. Major site coverage.
2. The ever increasing amount of people living single lifestyles will drive the 1 bedroom household to eventually be the most popular property type in Australia.
Although, as demand increases, often will prices and people will look for alternative 1 bedroom places to rent. We are already seeing signs that the market is un-affordable, therefore, we will need to create affordable household options for the fastest growing market in Australia.
Our Multi Occ Property which we have just released, caters for both markets.
One house that has 2 options and can recieve multiple income streams.
Our 5 bedroom 5 bathroom large house design, appeals to both the large family looking for a bigger better house AND the lone person households who need a cheaper alternative to renting, as it can be rented out on a room by room basis. Hence, why Multi Occ properties are the future of property investing.
So let me ask.. Do you still think buying that 4 bedroom house around the corner is your best investment option???
If you aren't sure, then you should probably have a chat to us first.
If you want to know more about the changing face of Australian real estate, then please feel free to contact us.
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