Boomer urban flight to pump up regional house prices
Baby Boomers may be set to flee the cities, and regional property markets could profit.
A new forecast from Propertyology has claimed Baby Boomers heading toward retirement could head toward more affordable sea- or tree-change markets. The report flagged 40 regional markets it said were set to benefit from Boomers’ urban flight.
The report claimed Boomers would be looking for more affordable markets due to a shortfall in their superannuation.
“Baby boomers didn't have their employer contributing towards superannuation until the back end of their working years. So, one way or another, around 90 per cent of this generation will have some reliance on a government-funded pension," Propertyology market analyst Simon Pressley said.
Pressley said “tens, and possibly hundreds of thousands” of Boomers could retire to regional areas. He argued that the property markets in these regional areas could see a major windfall.
Regional markets on the move
“When Australia’s baby boomer population equates to 4.45 million people, even if only a small portion did relocate, it will create significant extra demand for housing in the regions," Pressley said.
Pressley said the areas likely to be in demand share similar characteristics.
“Whether coastal or rural, we believe that the regional cities that will be in highest demand by baby-boomer re-locators will offer a combination of quality lifestyle, good health care, and availability of freestanding houses for less than $400,000.”