Population Growth & Property Investment: How it Effects Your Portfolio

Everyone knows that if there is more demand for something then there is supply, the likely scenario is that the prices of the in ‘’demand’’ product will increase.

Population growth has a significant impact on the housing market in Australia. As the population grows, there is an increased demand for housing, which over many years has led to elevated property values. This will likely continue as Australia welcomes approximately 200,000 people each year as international migrants.

One of the main driving reasons why Australia is so popular with international migrants is because our country has a strong economy and job market, which attracts people from other countries looking to build a better life for themselves or their kids. This influx of people will lead to a higher demand for housing and as an investor if you understand how to follow the population growth trends, its likely you will be able to see consistent capital growth in your portfolio for many years.

In addition to migration, population growth in Australia is also influenced by birth rates and increased life expectancy. This creates a need for more housing to accommodate these people and creates different markets for people to invest in. For example, first home buyers, family homes and down sizers.

My top 5 things that drive population growth:

1. Migration: Migration is a key driver of population growth. People move from one area to another for a variety of reasons, including job opportunities, access to better schools, and quality of life. When there is an influx of people into an area, it can result in increased economic activity, cultural diversity, and higher property prices.
2. Government Infrastructure: Good government infrastructure is crucial for attracting people to an area and supporting population growth. This includes things like public transportation, healthcare facilities, schools, and recreational amenities. When these services are available and well-maintained, people are more likely to move to an area and put down roots.
3. Strong & diverse economy: A strong and diverse economy is essential for population growth. When there is a robust and diversified job market, people are more likely to move to an area and stay there. This, in turn, creates more opportunities for businesses and fuels economic growth.
4. Quality of life: Quality of life is a key factor in attracting people to an area and supporting population growth. This includes things like access to green spaces, clean air and water, and a safe and healthy environment with affordable homes to live in. When people feel that their quality of life is good, they are more likely to stay in an area and raise families.
5. Lifestyle and social: The lifestyle and social aspects of an area are important factors in population growth. This includes things like cultural events, community organizations, and access to recreational activities. When there is a strong sense of community and social connectedness, people are more likely to stay in an area and feel engaged and invested in its future.

If you want to learn more about how population growth effects markets around Australia and where people are currently moving to, feel free to reach out below or give me a call.