With the re-emergence of the 1st home buyer it seems that it’s a new breed that’s the driving force behind this.
The Millennial population, who are typically born between 1981 and 1996, represent the most influential age cohort in today’s residential property market.
The Millennials are a significantly larger group than Generation X, those born between 1965 and 1981. The oldest Millennials have entered the 25 to 34-year-old age group over the past decade.
This population growth helped create demand for the record level of new units and apartments that have been built over the past decade. Millennials have provided a steady stream of tenants to occupy these dwellings or, for some at least, first-time homebuyers buying more affordable properties in our two major cities.
A new dynamic
The ageing of the Millennial population over the next decade is expected to create a new dynamic for the residential property market.
Changes in dwelling needs
Consequently, it’s likely this family stage of life will bring about a change in dwelling needs as Millennials seek larger dwellings and more of them move from renting into owner occupation.
The boom in apartment construction over the past decade has been key in accommodating the Millennial population as young renters and first-time homebuyers, but the housing market will need to change again over the next decade to be able to accommodate Millennials in their next stage of life.
Historical demographic trends indicate that they will be looking for larger family dwellings and more of them seeking to buy rather than rent.
Where next for Millennials?
It’s not known if Millennials, many of whom now live in the inner suburbs and other high amenity areas, will follow their predecessors into the outer suburbs and regional areas in search of a house or if they will prefer to stay in the inner and middle ring suburbs.
The challenge for the market to accommodate demand from this group is to provide a more diversified range of housing options in a proximate location at an affordable price yet designed well enough to accommodate a family.
Excerpt of excellent article about Millennials by Andrew Mirams – www.intuitivefinance.com.au
