We may not see flying cars but more likely, a continuation of today’s macro household trends.There will be 13 million homes that will house a population of 36 million in Australia in 2040, up from 11 million homes for 26 million people today.
Australian Conveyancer magazine, released last week, reveals how our cities will look in 20 years; how the family household will most likely be structured; and just what levels home prices will reach for the next generation.
Magazine link:
Australian Conveyancer edition five – Welcome to Tomorrow Land
In this month’s edition, we announced that the future of housing was now open for inspection, including:
- How our cities will look in 20 years.
- How the family household will most likely be structured.
- Just what levels will home prices reach for the next generation?
- Where Australia’s capital ranks globally in terms of affordability.
- City-by-city projection of housing valuations to 2030.
In other insights:
- Home prices will grow at an average annual rate of 7%. By 2030 the median price for a house will be $1.8m (up from $1.2m), Melbourne will be $1.5m in seven years (up from $897k), while Brisbane’s median prices will hit $1.2m (up from $767k).
- There will be more single-adult and single-parent households in 2041.
- The Australian Bureau of Statistics predicts that homes containing couples with children will make up 43% of Australians.
In the meantime, purchasing a home will not be pretty for the foreseeable future.
- In 2024, families will need a household income of $230k and a deposit of $243k to service a 30-year loan just to purchase an average prices home of $1.2m.
- Melbournians has a gross household income of $175k and a deposit of $179k to buy a $897k home.
The Bank of Mum and Dad (if one exists for some) may be needed to get some first-home buyers into the market.The rather bleak home-buying picture today is profoundly illustrated in a global housing affordability index. The Demographic International Housing Affordability study rates affordability in 94 global markets using a ratio of average home prices against average incomes.The list of 94 ranks Hong Kong (#94) as the least affordable place to live followed by Sydney (#93). Melbourne (#86), Adelaide (#81), Brisbane (#78). If you want to live cheaply, go to Pittsburgh in the US. Australia may be paradise but we have to pay for the privilege of living in the best place on Earth.
More property news available in Australian Conveyancer edition five.
Magazine link:
Australian Conveyancer edition five – Welcome to Tomorrow Land
