What's the big deal about population growth anyway?

Today I want to talk about the Australian population and how it impacts the property market, we’ll be delving into all sorts of things such as Deaths, Births, and migration but essentially it all comes down to the main drivers of supply & demand.

I can bang on about supply and demand all day, but I promise you I won’t talk about supply again after this segment, focusing on demand though, in terms of the property market, this represents the people who want to buy a dwelling to live in, and supply is obviously how many dwellings are in the market, as the population increases so does demand for places to live and therefore so should the number of dwellings.

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Of course, it all depends on the type of dwellings that there is a demand for, if the population is increasing due to births, then there might be more family members in the immediate family and a two-bedroom apartment or townhouse doesn’t cut it anymore, shift their demand to a larger asset.

This doesn’t mean we should be focusing on birth rates to determine when 3 bedroom free-standing homes are going to skyrocket, essentially there is always going to be first-timers, upgraders and downsizers through the whole market and I wanted to emphasize that demand Isn’t just a one size fits all correlation with population growth.

Another common myth I want to bring to your attention is demand versus desire, we would all love to own a dream house in our ideal holiday destination and live there for the rest of our lives, however, majority of us still do need to earn an income and look after our children, requiring us be close to that source of income or close to good schools.

It could just be that the price of the holiday home is simply unaffordable, So although you might think there is a high demand for that holiday house, its actually more of a desire to live there rather than pure demand, a good measure of high demand for an individual dwelling is to rock up on auction day and see 10 or more people actually bidding for the property, that’s demand in its rawest form.

So location, housing affordability and life stages all have an impact on the types of dwellings that are in demand, that’s why it’s crucial to dig further into how our population is broken up, rather than straight population growth, but before we get into it don’t forget to smash that like button.

According to the Australian Government Centre for Population there two main ways Australia’s population can grow, the first being internal changes in the population also known as the natural increase, this is essentially taking all the births in the country and misusing the deaths.

The second way the population grows is by people entering and departing Australia, this is called Net Overseas Migration or NOM for short, and is essentially Arrivals, minus departures. Below that national level, there is a third way that the population can grow or shrink.

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[gameplansproperty]

What other indicators do you look out for with population growth?

[MiloneMoneyMindset]

Net internal migration is so interesting man. These trends are for sure very important and valuable for real estate. Your insight on real estate is awesome dude. There's so much more that goes into evaluating a potential property and I've learned a lot of that from your videos! Another great one my dude!!

[InvestWithQueenie]

Thanks for sharing your insights! I think your channel is great, I love how you use Airbnb to leverage the short term rental marketing. New subscriber 🙏

[CALEBBYPRODUCTIONS]

Australia's Economy is really unique. I believe it was one of the only few that wasn't really affected by the 2008 housing market crisis.
Interesting topic and indepth look into how each portion of the population growth could affect property prices and their affordability.

[RidgeMallery]

Wow your market sounds a little bit like mine here in the US