The mighty millennial generation is reaching the stage of life where – for some – their need for property becomes more pressing. For many, their personal and work situations are changing as their families begin to grow. 

It’s important to note that a growing family is not the only determination for change in individual property wants and needs, and indeed having a family is not everyone’s goal. However, when you consider the impact of change in a large proportion of the population in terms of priorities, moving into a different stage (or phase) of life, it is worth noting the impact this may have on property.

Millennials – or Generation Y – have grown up during a time of significant tech changes and economic changes. Born between 1982–1999, many experienced a childhood without a constant pull toward technology, to have had it moulded into the way in which they learn, conduct everyday business, and form social connections. But this is not about technology, it is about property; and the impact that as 40% of the working Australian population, millennials are a key demographic when it comes to business and investing.

While a generalisation, when considering the habits and trends of earlier generations, millennials have by far delayed property ownership by comparison.  In many cases, economic challenges and extended education or career progression has led to many entering the workforce until later than previous generations.

This has led to affordability challenges meeting a sudden need for more suitable property in a new stage of life. Consider, a young couple developing their careers significantly, find the timing right to start a family – suddenly their two-bedroom inner-city apartment no longer meets their needs.

Understanding the needs of this generation can provide significant detail which can help the investor in identifying key areas. A key consideration in any investment decision includes demand. Moving away from smaller properties, growing families will look toward outer suburban areas, with space to grow and access to family-friendly facilities. Of course, not all millennials are on the move to the suburbs but understanding for many within this generation moving into this phase of their life, and adapting your investment strategies to meet growing property needs can prove beneficial.

Most millennials are tech savvy; the ‘digital natives’ of the generations having grown up as technology advanced. It’s fair to predict they’ll only get overtaken by the next generation (is it Z or Alpha or what comes next?) with their digital knowledge. The need to be close to CBD’s has changed, with many able to adapt to be able to work from home.

There is still a significant proportion of the population that are homeowners, many still investors. Rent-vesting has become a popular course of action for many, following the opportunity to get on the property ladder by investing in key areas, which are affordable from an investment standpoint, all the while choosing to rent in areas in which they wish to live but simply may not be able to afford to buy.

Cost of living challenges, delayed career progression, slow wage increase/inflation, and higher property prices have led to more of this generation renting. Whether by choice or challenge, many millennials are indeed renting for longer and the need for the right property continues; the savvy investor has the opportunity to play an important role in this.