Retirees — and people planning their retirement — have rapidly become a significant market force. Not only are people in this group looking for property to invest in but they are also looking at property to live in, as both owners and renters (albeit short term, or experimental rentals, until they decide on more permanent or longer term lifestyle changes).
However, retirees also impact both sides of the supply and demand equation. Many are selling up larger established homes, often with big land blocks, to downsize in to lower maintenance homes. So, not only do they impact the market as buyers but they also impact the supply side as vendors.
I can’t think of a similar period in history where we have had such a large bulky demand from the one demographic group — and it’s a group that is getting bigger and wealthier each year, especially as longevity and improvements in health care continue.
One of the biggest demand hotspots highlighted by the attentions of this group is for smaller houses, close to the city. These properties have already been long sought after by investors, professionals and more wealthy first home buyers. However, this additional attention by retirees should be a loud signal for investors to refocus on these properties, especially as the outlook is strong — and set to get stronger — for ongoing rental and purchase demand.