Population growth puts pressure on property
Australia has long been a popular destination for overseas migrants, which when coupled with natural increase has meant the nation’s population has continued to rise.
Figures from the Australian Bureau of Statistics (ABS) show that at the end of the June quarter, the country’s population increased 1.4 per cent from a year earlier. Victoria experienced the greatest rise, posting a 1.7 per cent rise in its number of residents.
Population growth may still be rising, but it has started to slow over recent years.
As more people move to and are born into Australia’s towns and cities, the need for more homes for sale also increases. This is something that needs to be addressed moving forward, especially if the population is to have an adequate supply of quality housing.
Down, but not out
Population growth may still be rising, but it has started to slow over recent years. The Housing Industry Association analysed ABS data to find this trend has emerged since the end of 2012, and it’s mainly a result of a fall in net overseas migration.
“The flow of overseas migration, made up of both inward and outward migration, contributed to a net increase of around 184,000 people during the period,” said HIA economist Geordan Murray.
“Natural population growth (the net balance of births and deaths) provided an additional 146,000 people.”
The ABS estimates that on 30 June this year, 23.7 million people lived in Australia. Net overseas migration for the year registered an 11.4 per cent rise, while natural increase accounted for 5.1 per cent of the increase.
Challenges from an ageing population
It’s not just that Australia is home to more people, as they’re also living longer. In the year to the end of June, the number of people reaching the age of 100 increased by 550.
The working age population, namely those between 15 and 64, marked a one per cent rise, while those aged 65 and over were up 2.1 per cent. Although the median age of 37 was unchanged, it has nevertheless increased three years since 1995.
Expanding the number of retirement living options is one solution to the issue, but efforts also need to be made to bring more houses for sale to the market. Improving living standards and healthcare mean the ageing population is likely to continue, placing further pressure on an already struggling industry.
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