Hey everyone, want to make some smart moves in the Australian property market? You bet you do. And you know who’s on the right track? You are. How to use demographics data for research in the property market. Let’s unpack it together.
Sounds good.
See, we all know a growing population is good for property investors, but let’s go deeper. Like way deeper. It’s about the why. You know, it’s not just about the numbers themselves.
Exactly.
It’s about the story. behind those numbers.
Yeah,
think about it. Two suburbs, both growing, same rate, but one attracting young professionals, tech, boom, the whole shebang. The other retirees are looking for peace and quiet. Same growth, wildly different investment game plan.
So, it’s like, yeah, numbers matter, but what’s driving them? That’s the key.
Spot on. And that’s where looking at jobs comes in big time.
Right. People need jobs. Jobs usually mean they need a place to live.
Exactly. Don’t put all your eggs in one basket or rely on one giant company. It’s risky.
Like what if that one big factory in town shuts down?
Exactly. Suddenly the housing market’s a ghost town. A good mix of industries. That’s your buffer. Means more sustainable growth. You know,
makes sense. Spreads the risk.
So we’ve got growth, reasons for growth, a diverse job market. What else should we be looking at?
Income growth. Got to watch that,
right? Because more money in people’s pockets usually means
more valuable properties, higher rents, the whole nine yards. Comparing income data between suburbs can be a gold mine. Imagine seeing one suburb with higher income residents moving in steadily. That’s a good sign.
So, we’re identifying those areas ready to take off. Now, how do we take all this and figure out what kind of property to invest in? Families aren’t looking for the same thing as students, right?
Exactly. Different strokes for different folks. Let’s say a suburb popular with young families.
Okay. So, in that case, I’m thinking single family homes, maybe a backyard, extra bedrooms.
You got it. Close to schools, parks, all that good stuff. But now, switch it up. Imagine a suburb, tons of students, recent grads, young couples, no kids yet.
Location, location, location. They want to be near the action, right?
Think about it. Apartments, town houses, close to universities, jobs, public transit, who needs a huge backyard.
They want affordable and convenient, different demographics, different needs, different investments. But how do we get even more specific with our research? Like hyper local, you know, because that can make or break a decision.
Absolutely. And this is where a tool a lot of people overlook comes in. The Australian census.
The census, I’ll admit, always seemed a bit, I don’t know, abstract for me. How do we actually use that in real estate?
Think of it as zooming in on the details of a neighbourhood. It can tell you things like population density. We talking jam-packed or spread out.
Then you’ve got housing types, mostly detached homes, town houses, apartments, household size, and who’s living there. Two big families, young couples, a real mix. It’s all in there.
Okay. So, like if I’m looking at a place with lots of families with young kids, that lines up with what we were saying before, right? Those detached homes, backyards, good schools nearby.
Exactly. Or imagine you see a trend. More single person households in a suburb might make you think smaller apartments, good investment there.
Each piece of data from the census adds to the picture, helps you make a harder choice.
And get this, the government uses this data, too. Urban planning, development, the whole shebang.
So, the info I’m using as an investor, it’s shaping the future of these areas.
Precisely. So, you can start to anticipate changes. You know, maybe they’ll improve infrastructure, add new amenities, stuff like that. And that can really impact those property values later on.
Wow. Okay. It’s all connected. But even with all this data, we have to remember things change. People change,
right? You are. And a couple big trends in Australia right now. the aging population and families are getting smaller.
We hear about those a lot, but how does that actually affect real estate? What does it mean for investors?
Well, think about it. More Aussies retiring. They’re going to want smaller homes, easier to manage, aging in place, they call it.
So, not those big multi-story houses, but maybe single level, wider doorways, even communities designed for seniors.
You got it. This could also mean more demand for retirement villages, assisted living, that kind of thing.
A whole side of the market to think about. It’s like these trends, they set off a chain reaction.
They really do. Right.
And then you’ve got smaller families that changes what kind of housing people want too,
right? Like not everyone needs that classic four bedroom, two-bathroom house anymore.
Exactly. We’re already seeing it. People want smaller places, adaptable spaces, you know,
like the idea of a forever home is becoming more of a for now home. Flexibility is key.
You said it. And that’s where those smaller trends within the bigger trends, those get interesting.
Like what? Give me an example.
Well, even something small like more rental properties allowing pets. Well, that can change how they design and market those properties.
Well, that’s a good point. If your property is pet friendly, that could be a deal for renters.
Exactly. It’s about staying ahead of the game, understanding what matters to renters to buyers today. So, with all this in mind, what really stands out to you from what we’ve talked about?
You know, it’s funny. It’s that connection between the little things and the big picture. Like we’re not just crunching numbers here. We’re talking about how people actually live and how knowing that translates into real opportunities.
It’s about seeing the human side of the data. Absolutely.
And speaking of connecting the dots, we’ve talked about these trends one by one, but what if we stack them together? Like older folks wanting smaller places, families shrinking, maybe needing those big homes less often. Could those two things, you know, overlap create something interesting?
Now you’re thinking that’s what makes this kind of analysis so powerful. You put your finger on it, a potential sweet spot in the market. Smaller homes, well-designed, perfect for older folks. It’s not just square footage, it’s accessibility, comfort, all that.
And if you add in the fact that as people age, they often want more connection, community, maybe there’s even more demand for co-housing or neighbourhoods designed with that in mind,
right? And that’s where this kind of thinking puts you ahead. It’s not just reacting to the market, it’s knowing where it’s going and being ready.
This has been amazing. We’ve covered so much. Population growth, housing types, and that census data. Who knew?
It’s been a pleasure, really.
But before we go, I want to leave everyone with something to think about. We talked about the trends we’re seeing now, but what about the ones just starting? What about remote work or the focus on sustainability, walkable neighbourhoods, that sense of community? How will that change Australian property in the years to come?
Such good questions to consider. Just goes to show things are always changing and demographics You’re just one part of it.
Exactly. So, everyone listening, stay curious. Keep your eyes peeled. The more you understand about what shapes the world, the better choices you’ll make. Until next time, happy investing.
