Economic forecaster BIS Oxford Economics has released a new report looking at trends revealed by an analysis of Census data from the past 25 years.
The Emerging Trends in Residential Market Demand report says an overall increase in the desire to be living in higher density dwellings – across all age groups – will continue to drive solid demand for units and apartments in the coming decade.
In the past 15 years, there has been rapid population growth among 20 to 34-year-olds, driven by a combination of the movement of Generation Y into this age group, as well as strong net overseas migration.
In the next decade, this surge in 20 to 34-year olds will translate to an “acceleration in household growth of those in their late 30s and early 40s,” according to BIS Oxford Economics senior manager, residential property, Angie Zigomanis.
“By this stage, Generation Y will be increasingly coupling up and moving into the family-forming stage of life, and many will be looking to purchase a dwelling, most likely larger dwellings such as detached houses or townhouses, or family-friendly apartments.”
Mr Zigomanis said the small one- and two-bedroom apartments popular among millennials currently renting in their 20’s would be “inadequate for their needs as owner-occupiers with an emerging family”.
“Apartments that do meet this need will be in demand,” he said.