Baby boomers may be at the root of the housing problem in the U.S. but analysts believe that in Australia, they may play a key role in supporting the demand for apartments. Like their American counterparts, Australian baby boomers, i.e.: those citizens born between 1946 and 1964, tend to downsize their place of residence as their age advances. However, the Australian real estate market is not likely to suffer from this switchover unlike the U.S. market. The main reason behind this is that here the Australian planning policies have been designed with foresight.

Policies have Prevented Over- Supply of Sale Unworthy Properties

Here, policies have traditionally been based not just on population forecasts, they have also taken into account the current trends in housing. In locations like New South Wales, senior housing in well equipped residential areas has always been encouraged and this has ensured that baby boomers residing in these areas need not move out seeking easier access to the city’s infrastructure. The lack of racial divides has also ensured that certain segments of the population are not pressured into moving out because they feel ‘out of place’ in locations where inordinately large numbers of a different population segment reside.

Suburbs vs. Inner Ring Locations

As with any other country, it is the inner ring locations that are most sought after by baby boomers who find it necessary to move closer to amenities as their age advances. This was one of the biggest reasons for the dramatic drop in interest in detached homes across the U.S. which caused the value of such properties to plummet.

In Australia, while suburban homes draw lesser attention than those in prime, central locations, there is little risk of the former homes eroding in value substantially. The concept of refurbishment and renovation is quite a common one here and this alone will save many detached homes from doom. Unlike in the U.S., the owners are not averse to splitting the home into two when they need to downsize, as an alternative to moving out to a smaller one, putting their home up for sale. This adaptability alone puts the suburban detached homes segment back in the marketplace as a desirable property to own.

Baby boomers may be bad news for the U.S. real estate market but in Australia they still have some valuable contributions to make to this market. As long as this state of affairs continues, there is no doubt that Australia’s suburbs will continue to attract the right kind of attention from serious buyers.