The changing face of Australian households and the impact on property development
As household dynamics shift, smart property developers are diversifying their designs.
Australian household dynamics are evolving with increased diversity in family structures and housing preferences. Diversifying property designs to accommodate different and emerging demographics is a strategic imperative for property developers. It not only positions you for long-term success, it contributes to the development of more inclusive, sustainable and thriving communities.
At Red23 , we’re constantly analysing property trends to help our developer partners make informed decisions about their current and future projects. Here are just some of the demographic shifts that are impacting the residential property landscape in 2023 and beyond.
Changing family structures
Traditional nuclear families remain significant but there is a growing diversity in family structures. The proportion of couples without kids in the home is growing along with the number of single-parent families. The Australian Bureau of Statistics (ABS) projects that by 2041 single-male-parent families will increase by between 44% and 65% while the percentage of single-female-parent families will remain fairly stable.
While there is limited data on the trend, we’re hearing more stories of single-parent families living together to ease financial pressure and share domestic responsibilities. In the US, they’ve coined the term ‘Mommune’ to refer to the co-living arrangements of single mothers who share housing costs, childcare responsibilities and resources. While 'Dadmune' doesn’t quite have the same ring to it, could we see more single-male-parent families electing to live under one roof? With the rising cost of living, it would make sense.
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At Red23, we undertake extensive research to understand the demographics of specific areas/corridors so property developers can diversify their offerings and cater to the needs of local buyers – whether they’re a couple, single-child household or blended family with multiple kids of different ages. While family preferences vary, our sales agents say there’s a common theme – family buyers want community-centred and walkable developments with close proximity to parks, recreational facilities, good schools, and shopping centres.
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Ageing population
Australia, like many developed countries, has an ageing population. As more people enter their retirement years, there is a rising demand for age-appropriate housing that is accessible, low maintenance and a little bit luxe.
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At Red23, we’ve seen an increasing demand for single-storey townhouses with premium finishes from people looking to downsize without compromise. While these buyers are happy to give up a bedroom or two and put the lawnmower on Gumtree, they still want a home that feels high-end with luxury details and top-of-the-range appliances.
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Working from home
The pandemic left us with more than a renewed appreciation for travel and eight jumbo bottles of hand sanitiser. It also accelerated the adoption of working from home. While most professionals are back in the office these days, it’s often part of a hybrid working arrangement. Then there are those who left corporate life to start their own businesses as part of The Great Resignation.
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What does all of that mean for property development? The home office is no longer a nice-to-have, it’s a must. And often one working space won’t suffice. In a family, it’s now common for two adults to be working from home creating a need for two or three desk spaces – one for each parent and one for the kid/s. Hybrid working arrangements also mean people are more open to living further away from work as commuting three days a week is a lot less daunting than a five-day commute. According to ABS data, nearly 1.6 million people are now calling regional Victoria home – an increase of 15 per cent from the previous Census.
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Multi-generational living
Economic factors, such as the rising cost of housing and the desire for intergenerational support have led to an increase in multi-generational living with an estimated 1 in 5 Australians living in a multi-generational household . And we’re not just talking about the grandparent/s moving in. Adult children are living with their parents for longer periods and having their own kids before saving up enough to ‘flee the nest’.
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This doesn’t always mean you need a granny flat in the garden. At Red23, we’re partnering with our builder and developer clients to launch innovative multi-generational living solutions. This includes a “two homes in one” package where each living space is equipped with its own kitchen/kitchenette, bathrooms, bedrooms and living quarters. These homes not only support a harmonious lifestyle but also provide investors a higher-than-average return.
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Lone-person households
On the other end of the spectrum, living alone is on the rise across all metro municipalities as we shared in last month’s article on the future of the medium density market . The number of lone-person households will continue to increase in the coming decades as people live longer, birth rates decline, and more people pursue an independent lifestyle. By 2041, the ABS projects that between 3 million and 3.5 million people will be living alone making it one of the fastest-growing household types in Australia.
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This trend is seeing an increase in demand for smaller homes suited to single occupancy where location, convenience and security trump size on the list of priorities. We’re also seeing more developers focus on microhomes built on lots as small as 80sqm.
It’s also interesting to note that in a study by CommBank , 38 per cent of first-home buyers said that having space for their pets was extremely important when buying their first property so don’t discount the appeal of a balcony/courtyard for the pooch, cat or guinea pig.
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All these shifts are reshaping how we envision homes and communities but property development has proven to be a dynamic and adaptive industry. As a leading sales and marketing agency, Red23 is excited to work with developers and builders as they respond to these changes and create housing solutions that anticipate and mirror the evolving needs of society.
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About Red23
Red23 specialises in sales and marketing for new land and townhouse communities across the eastern seaboard of Australia. We specialise in custom and data-driven strategies that turn prospective buyers into proud owners and help build thriving communities.
Since opening in 2007, we’ve built strong and lasting relationships with Australia’s leading developers and become a natural extension of their teams. While our clients have diverse projects ranging from 50 to 2,500 lots, they all want the same thing - an agency that will pull out all the stops to deliver exceptional results.