Property Market Forecast: Gen Y & Z Set To Skyrocket Australia By 2030
Millennials and Generation Z (combined they make MillZ) are slated to drive the property market in the next 10 years.
Globally, our population is looking to hit 8.3 billion people by 2030 where the average age of a person will be 34 years old – and these people are going to want real estate.
So where will these generations opt to live?
One thing I refer to a lot is that the world is moving to cities. In 2030, MillZ will still be in the prime of their working lives and will account for two billion (middle class) people worldwide.
To accommodate for this huge generation, cities are gearing up to grow new jobs, new infrastructure – new everything. By 2030, 62 per cent of people will live in cities.
Australia Is Set To Grow More Than Ever Before
In other words, Australia does not have an aging or dying population that will take the potential of home ownership with them.
We have two huge new generations coming through that are going to push our economy into the next phase. In fact, MillZ is poised to take on even more debt AND more growth.
Where will this growth come from? Innovation and jobs.
New Jobs Will Disrupt The Real Estate Market
By 2030, we can expect to see a range of new jobs in existence that we wouldn’t even be able to fathom today.
These jobs will likely grow in cities, where knowledge meets technology meets infrastructure. And where the jobs grow, the people go.
One thing I touched on in more depth in my blog about behavioural changes in the phygital world is that the office market will remain. While they may be downsized or look different – think collaborative working spaces like WeWork – they will still exist in order to attract new business or workers.
And of course, if you want to attract the brightest and most skilled talent, your office needs to remain in a central location that offers more than a space to set up a computer.
Cities are the best places for businesses to grow new jobs, especially for MillZ who are coming into the age of living and playing where they work.
Mill-z Are Finding New Ways To Enter The Market
Younger millennials and generation z will be looking to invest in property at earlier stages of life, having watched older millennials struggle to get a foot in the door due to housing affordability.
Already we are seeing new, innovative ways that this generation are entering the real estate market compared to their older counterparts.
For example, rent-vesting.
‘Rent-vesting’ is the premise of buying where you can afford but renting where you ideally want to live.
It allows you to live the lifestyle you want while building wealth in an investment property elsewhere. For MillZ – most of whom would be first home buyers – this gives them the opportunity to enter the property market without having to sacrifice their lifestyle.
For a young person trying to crack the market, this is a pretty solid option as long as they are still buying in good growth areas that offer liveability and mobility.
Looking Ahead To 2030
In 2030 we will have a wave of millennials and generation z that are young, hungry and bringing with them a wealth of ideas for growth.
Of course, they are going to make up a huge marketplace so demand for real estate will soar. Contrary to what people said during COVID-19, that demand is not going to rural areas.
It will remain in and around cities, where work, play, innovation and life can all seamlessly intertwine.
When it comes to investing in property, there’s no better time to start building your property portfolio. Between now and 2030 the market is ripe with opportunity for those who take action and buy well.
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By Sam Saggers