Many seem to confuse our demographic shape with housing market activity.
A classic example is that baby boomers – due to the large size of this demographic cohort – is a major home buyer group.
Yet an analysis of recent buyer trends tells a different story.
Three tables this post.
Table 1: Recent buyers by product type, Australia
| Housing product | First home buyer | Changeover buyer | ||
| New dwelling | Established dwelling | New dwelling | Established dwelling | |
| Detached house | 65% | 80% | 81% | 85% |
| Townhouse, villa or duplex | 22% | 10% | 8% | 11% |
| Apartment | 13% | 10% | 11% | 4% |
| Matusik + ABS 41300, table 9.5. | ||||
Table 1 tells me that most buyers still prefer detached houses. One exception is that more first home buyers are starting to buy something semi-detached or an apartment.
Table 2: Recent buyers by age group, Australia
| Age group | First home buyer | Changeover buyer | ||
| New dwelling | Established dwelling | New dwelling | Established dwelling | |
| Under 24 years | 3% | 6% | 0% | 0% |
| 25 to 34 years | 53% | 47% | 12% | 14% |
| 35 to 44 years | 30% | 30% | 26% | 26% |
| 45 to 54 years | 12% | 12% | 20% | 23% |
| 55 to 64 years | 2% | 2% | 16% | 16% |
| Over 65 years | 0% | 3% | 26% | 21% |
| Matusik + ABS 41300, table 9.5. | ||||
Table 2 shows, as one would expect, that most first home buyers are aged between 25 and 34 years of age.
Most ‘changeover’ buyers are aged under 54 years, with empty nesters and baby boomers make up between 30% and 40% of the housing market depending on the age of the housing being purchased.
Table 3: Recent buyers by household type, Australia
| Household type | First home buyer | Changeover buyer | ||
| New dwelling | Established dwelling | New dwelling | Established dwelling | |
| Family, dependent kids | 52% | 38% | 44% | 41% |
| Multi-generational family | 5% | 12% | 9% | 17% |
| Couple | 23% | 23% | 29% | 26% |
| Lone person | 20% | 17% | 18% | 16% |
| Matusik + ABS 41300, table 9.5. | ||||
Table 3 tells me that most home buyers are families with children at home. Lone persons aren’t as active as their demographic shape would suggest. And in contrast, multi-generational households account for more sales – and especially when it comes to established homes – than their cohort size.