Australian Property News
Demographic tipped to influence housing
Posted on Wednesday, December 10 2008 at 5:07 PM
Generation Y will be the most influential generational group in property since the baby boomers, according to an Australian property researcher.
Colliers International residential research director Jonathan Rivera says Australia is on the cusp of a ‘real estate revolution’ and developers can’t ignore the demographic shift created by the emergence of Gen Y homebuyers.
“Within a few years, Generation Y is tipped to inspire great change across residential landscapes,” he says.
“Our research has shown that Gen Y are very accepting of density and the majority believe they do not have to move to the suburbs once they have kids.
“They are interested in close-knit neighbourhoods.”
Rivera says developers should be looking to create compact urban developments in middle ring suburbs with strong social and amenity networks in order to tap into the $48 billion spending power of Gen Ys.
There are more than 5.5 million in the demographic, he says, which is 200,000 more than baby boomers and 700,000 more than Generation X.
“We will see a greater shift of Gen Y toward home ownership in 2011 and 2012,” he says.
“Half a million of these Gen Ys earn at least $1000 a week.”
Rivera believes Gen Y homebuyers would be drawn to a development with unique features like a roof top common area in Queensland or a ‘fire pit’ in the colder states where residents can meet up.
“Our findings have shown what they are seeking are ‘destination developments’ where connectivity is key,” he says.
“Through our consultancies we have discovered that developers should be offering location-driven housing but of reduced product size but with a bigger focus on design and layout.
“They (Gen Y) are the most connected generation in our history and place high value on staying connected with friends and family.
“Creating density with space are the characteristics needed to support this lifestyle.”
According to Rivera investors should also be looking to benefit from the large proportion of Gen Y that will be forced to rent.
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