Which suburbs have seen a millennial population boom?

Generation Y, or millennials as they are commonly known, are the most talked-about generation when it comes to property.

The group of roughly 25-34 year-olds is firmly in the first home buyer camp, where they face tough market conditions and criticism from baby boomers, and the occasional young property developer, for prioritising their smashed avo over saving.

Millennials have a significant impact on the housing market, with governments offering incentives to get them on the property ladder.

But which suburbs have seen the most significant increase in the population of millennials?

Where are the millennials?

The Brisbane suburb of Rochedale has seen the biggest population surge of 25-34 year olds, followed by Caversham in Perth, Arncliffe in southern Sydney and Tusmore in Adelaide’s inner east.

We looked at the ABS census data, comparing 2011 and 2016, to see which inner suburbs (less than 15km from the CBD) had the highest millennial population growth, as well as how each suburb fared for price growth and growth in median rent (data sourced from CoreLogic and REA internal data).

Millennial boom suburbs

The millennial effect

REA Group Chief Economist Nerida Conisbee says while three of the top ten suburbs (Rochedale, Caversham and Landsdale) included new development areas, which not surprisingly attract young buyers, the remainder of the top ten were inner city locations.

“And they’re inner locations that are relatively cheap compared to other inner locations in their capital cities,” Conisbee says.

Suburbs like Sydney’s Arncliffe would become much more desirable due to the influx of young people.

“When young people move in they begin to change the nature of that location. They really improve the shops, they start to demand better cafes, restaurants and nightlife. They want better schools for their kids,” Conisbee says.

“A decade ago, the inner west of Sydney was pretty undesirable and not many people wanted to be there. Since then a lot of young people have moved in and the inner west of Sydney has seen some of the strongest price growth in Australia.”

Another Sydney suburb on the list, Mascot, is near the airport, but its price growth in five years has almost doubled.

Couple in street

Millennials have historically transformed the suburbs they live in. Picture: Kate Griffin

In Melbourne, Abbotsford has seen a big influx of millennials.

“Abbotsford is cheaper than Richmond which has generally been one of the preferred inner locations for young people. Now that’s spread to Abbotsford as the next alternative,” Conisbee says.

Younger buyers not only have the ability to transform a suburb’s facilities, but also its housing stock.

“They’ve got the energy to gentrify stock. They’ll buy older houses and put the money in, whereas older Australians don’t have that same energy to renovate older and more run down places,” Conisbee says.

 

 

thanks realestate.com.au

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