One of the biggest talking points following the release of the first 2021 Census statistics earlier this week is the fact that the Millennial generation (25-39 year-olds) is now overtaking the Baby Boomers (55-74 year-olds) across Australia. Both Millenials and Baby Boomers have more than 5.4 million people, with just 5,662 more Baby Boomers! Millennials…
One of the biggest talking points following the release of the first 2021 Census statistics earlier this week is the fact that the Millennial generation (25-39 year-olds) is now overtaking the Baby Boomers (55-74 year-olds) across Australia. Both Millenials and Baby Boomers have more than 5.4 million people, with just 5,662 more Baby Boomers!
Millennials play a key role in the current economy, making up 34 per cent of the Australian workforce. They’re upskilling by representing 40 per cent of people attending vocational education and in the first ten years of their family-forming life stage, they have given birth to 3.1 million children.
So what is their impact on the Sunshine Coast?
The data shows while we are growing in all age groups (our population grew from 294,367 to 342,541 between 2016 and 2021), we are now losing the young again. In August 2021, we recorded 59,106 Millenials and 86,271 Baby Boomers, meaning the Millenial generation is still lacking in this region.
We know the young WANT to come here, and they want to STAY here, but something is impacting why they can’t. We don’t believe it’s due to the availability of jobs – there is plenty happening and the opportunity is growing every day. It is because we do not have enough affordable accommodation and rental properties to meet their needs. Baby Boomers are retiring in large family homes because there aren’t smaller accommodation options available for them to downsize to…which means that product isn’t becoming available for the Millennials and their growing families. They are then either not coming, or competing for the balance of available, suitable stock as it comes to the market. They aren’t the only ones.
The statistics also show the Sunshine Coast is a predominantly Gen X town (40-54 yo) which has its positives in the way of leadership and wealth. On the other side, they also play a key role in the current pressures on our property market. A lack of supply means people are buying what they can to ensure they secure ‘something’, versus what they want, therefore driving prices and rents up and forcing people out of the market. A majority of the properties being presented to the market for sale over the last two years have been investment properties; an expected outcome as investors take the opportunity to realise significant equity growth. Unfortunately less than half of the rental properties put up for sale return to the rental pool due to the demand from owner-occupiers – the Millenials and moreso the wealthy Gen X who can outbid others.
To put it simply what we have on the Sunshine Coast is:
In our recent 2022 eBook The Sunshine Coast: The Future we spoke about the need to increase supply, to provide the right kind of housing in the right areas to ensure there is diversity in our population when it comes to both age and socioeconomic status. This latest data proves our predictions and fears – we have an ageing population trying to turn but our accommodation diversity and volume are limiting that change.
The unprecedented economic opportunity and job creation will continue to attract all age groups. The undersupply will mean that those with the most opportunity will add to the undersupply…as they will be able to afford to pay more to purchase and rent property.
Great news for those who own property and for investors, great news for those who love the thought of living in Australia’s version of Manhattan, not great news for our young, millennials and their families, low-income earners or for homelessness.
As more data is released over the coming months we look forward to digging deeper into the statistics. We will use them to help drive our campaign for change on the Sunshine Coast to protect our lifestyle and create a region where our children and grandchildren will thrive.
Investors play a key role in helping correct this imbalance. Contact us today to speak with one of our expert property coaches to discuss how you can leverage this opportunity and be part of the solution.