Population boom fuels housing demand

A good way for investors to predict future demand in the property market is to follow population growth patterns.

Locations that have more people moving to them experience an uplift in demand to buy and rent properties, and that is what leads to further price growth.

Australia’s population grew by 1.8% in the 12 months to September 2024, adding 484,000 people to the national headcount, according to the latest figures from the Australian Bureau of Statistics (ABS).

That puts Australia’s population at 27.3 million, with overseas migration once again leading the charge. While the post-pandemic migration surge has moderated, we’re still seeing 618,000 arrivals versus 238,000 departures.

All of this contributes to pressure on the housing market.

Western Australia led population growth, up by 2.5%, followed by Victoria, up 2.1%, Queensland, 2% and Tasmania,  0.3%.

Numbers-wise the population grew the most in Victoria, up by 146,700 people, while New South Wales added 120,800 and Queensland, 111,900.

These increases represent a real increase in housing demand across all tenures: ownership, rental, and emergency accommodation.

Australia’s housing supply continues to lag population growth and while big-city markets get the media spotlight, regional areas are also experiencing intense growth and growing demand for housing.