Lone person households to dramatically increase
Latest figures released from the Australian Bureau of Statistics (ABS) suggest that the number of households within Australia is set to increase by a whopping 4.3 million over the next 25 years. However, a large proportion of these homes will have to be one or two bedroom apartments to cater for the expected rise of lone person households.
The ABS predicts that the number of lone person households will increase by 65 per cent in the next 25 years and this particular household type will see the highest increase, due to the ever ageing population and people generally living longer due to better healthcare. Approximately 3.4 million people will be living on their own.
The average household size is also likely to drop, as people today are becoming more career orientated and starting a family later, as well as having fewer children.
So what pressures will this put on our major cities which are already reaching full capacity with less land becoming available?
With the expected rise of more people living alone in the future, and living longer, this will put a strain on housing, making housing less affordable.
The demand for both one and two bedroom apartments will increase; however young singles and professionals will still want to live in close proximity to the city to be conveniently located close to work, amenities and public transport options. With this mindset, it will therefore become increasingly difficult for young people to own their own home close to the city if demand skyrockets, whilst supply remains low. They will have to look further outside the city for more affordable housing where there is still plenty of land available.
Property investors will do well to invest in a one or two bedroom apartment that will appeal to these singles, whilst developers are likely to develop higher density developments catered to the one or two person households. As there is less land available, the only way to build is upwards.
In 2011, of those living alone, 54% were females and this number is expected to rise and end up being somewhere between 52% and 57% by 2036. Interestingly though, more men aged between 15 and 54 live alone, compared to women.
Published on 9th of April 2015 by Marty Stanowich