I wrote about demographics about a month ago – back when the world was a far less turbulent place.
That post featured a table showing the total size of the Australia market by housing buyer segmentation.
Several followers asked me if I had similar figures for the rental market.
And yes, I do.
See the table below.
|Australian rental housing demand|
|Age range*||Past decade||Next decade||Change|
|Matusik + ABS 3101.0. and 3222.0. * Age range of the primary rental bond holder.
Past decade 2009 to 2019. Next decade 2020 to 2030, medium series.
There is a need to build more rental properties over the next decade than the last ten years. That lift is close to 40%.
This demand has also shifted.
We will need more rental accommodation to cater for young renters, people in their mid-30 and mid-50s and also for those in the last stage of life.
The young want to live near the action but will share accommodation. The demand for communal rental housing solutions is already on the rise and this need is expected to grow. More build-to-rent product is on its way.
Many of the older renters will want better quality digs. They are after this type of stuff.
Some of our aged folks who need to rent might be best housed ‘at home’ with their children. The same applies to many younger renters too, this time renting from their parents in either an investment property or at home.
There will be the need for more granny flats and backyard home solutions.