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Population forecasts point to tough housing trend

By Staff Reporter
7

Affordability may become a bigger problem in coming decades as the rise in single-person households makes property harder to find.

The number of Australian households is projected to increase from 8.4 million in 2011 to between 12.6 million and 12.7 million in 2036, according to the Australian Bureau of Statistics.

That represents an increase of between 49.3 per cent and 51.2 per cent.

Over that period, nation’s population is expected to jump by 45.3 per cent from 22.3 million to 32.4 million.

The average household size was 2.6 people per household in 2011 and the forecast for 2036 is between 2.5 and 2.6 people.

At the same time, the number of single-person households is expected to increase by between 57.1 per cent and 61.9 per cent.

SQM Research managing director Louis Christopher said the rise in single-person households would raise demand for one- and two-bedroom units.

“Developers here will have a big opportunity to cash in on this ageing trend and build even greater numbers of high-density accommodation to house sole-person households,” Mr Christopher said.

But the ABS forecasts also indicate housing affordability will become an even bigger problem than it is now.

“Most of the population will remain concentrated in the bigger cities of Sydney, Melbourne and Brisbane,” Mr Christopher said.

“So unless there is a drastic change by governments aimed at solving the housing affordability crisis, younger Australians will still struggle to own their own home.”

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