real estate South Coast Property Specialists (Carlene Franzen) Tips #1086:
Changing Your Occupation into the Building Trade Are you a bit bored in your job and looking for something with real long-term opportunities? That sounds like an advertisement catch line doesn’t it. However, if the economists and statisticians are correct, Australia will need to increase its construction of residential accommodation massively over the next few decades to keep up with demand. During last year we mentioned the Intergenerational Report which the Government released to help industries and businesses plan for the next 40 years. In the report, the population is projected to be nearly 39 million by 2061. Currently there are approximately 26 million people in Australia and it has taken over 200 years to get to this number. So, in the next 40 years our population will increase by 50% (13 million people). The intergenerational report also forecasts that the number of people in each household (currently 2.5 people) will shrink slightly. The net impact of this is that we are going to require about a third more residential dwellings that we currently have today. Or put another way, that is one new property for every two properties that currently exists. Currently there are approximately 10 million homes in Australia and if we need to build 5 million homes over the 40 years that’s an average of 125,000 every year. This is going to put a massive strain on the building industry from top to bottom. Town Planners and infrastructure providers will have to design new ways to cope with this increase and the building and building supplies companies will be flat out trying to keep up with demand. Obviously not all of it will be taken up in more urban sprawl. No doubt there will be a heavy reliance on high density living assuming people are able to move on from their reluctance to do so because of Covid. High rise apartments will likely start to appear in more areas other than the CBD and medium density housing such as townhouses will increase in all areas as well. So, what does this mean for the regions like ours? Well, not everyone is going to want to live “cheek to jowl” and so those that are able to work remotely or don’t need to work at all, may well seek solace in regions such as ours where they have more room to move and enjoy a more relaxed lifestyle. Some may even take up a new trade…….maybe in the building industry.
beagle weekly : Vol 249 March 4th 2022
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