The Australian property market is undergoing significant changes, influenced by the preferences and needs of various generations.
As of 2024, residential real estate underpins Australia’s wealth, valued at approximately $11.1 trillion.
Generational Preferences
- Baby boomers (Born 1946 to 1964 aged 60 to 78)
a) Prefer established suburbs with access to amenities and healthcare.
b) Focus on downsizing opportunities and looking for low-maintenance properties. - Generation X (Born 1965 to 1980 aged 42 to 58)
a) Value family-friendly neighbourhoods with good schools and parks.
b) Seek properties that offer a balance between space and affordability. - Millennials (Born 1981 to 1996 aged 28 to 42)
a) Show a preference for urban living, prioritizing proximity to work and lifestyle amenities.
b) Interested in sustainable and energy-efficient homes. - Generation Z (Born 1997 to 2012 aged 11 to 26)
a) First-time buyers who are tech-savvy and value modern designs.
b) Often seek affordable housing options that allow them to enter the market.
Millennials Lead the Charge in Property Investment
- Millennials are emerging as a set of active property investors, with 43% of this generation owning investment properties.
- This trend reflects their desire for financial security and wealth creation through real estate.
- Many millennials are leveraging technology to research and navigate the property market, making informed decisions about their investments.
As a result, millennials are reshaping the future of real estate in Australia.

Key Features Desired by Housing Buyers
1) Outdoor Spaces
Gardens, balconies, and proximity to parks are increasingly important for all generations, especially post-pandemic.
2) Home Office Space
The rise of remote work has made dedicated office spaces a priority for many buyers.
3) Energy Efficiency
Features such as solar panels, energy-efficient appliances, and good insulation are highly sought after, particularly among younger buyers.
4) Smart Housing Technology
Integration of smart technology for security and convenience is becoming a standard expectation.
Market Trends Influenced by Generational Shifts
1) Increased demand in Suburban Areas
As remote work becomes more common, many buyers are moving away from city centres to suburbs where they can find larger houses at more affordable prices.
2) Rise in first-time Buyers
Government incentives and lower interest rates have made it easier for younger generations to enter the market, leading to increased competition for entry-level homes.
3) Focus on Community Living
There is a growing interest in developments that foster community interaction, such as mixed-use spaces with shops, cafes, and recreational facilities.
Impact on Property Development
1) Developers are adapting to these changing preferences by creating homes that cater to the needs of different generations.
2) Projects that incorporate communal spaces, green areas, and modern amenities are gaining traction in the market.
Challenges Faced by Housing Buyers
1) Affordability Issues
Rising property prices continue to be a barrier for many first-time buyers, particularly in major cities.
2) Limited Stock
The competition for desirable properties has led to reduced inventory, making it challenging for buyers to find suitable houses.
Conclusion
- Understanding what housing buyers want is crucial for navigating the evolving Australian property market.
- As different generations shape demand through their unique preferences and lifestyles, real estate professionals must stay attuned to these trends.
- By focusing on features that enhance livability and sustainability, developers can meet the needs of today’s buyers while fostering a more inclusive housing market.
- Investors should also consider these insights when looking for opportunities in the market.
- Properties that align with generational preferences are likely to see sustained demand, making them valuable additions to any investment portfolio.
Success Avenue Property Consulting specialises in providing tailored strategies and expert guidance to help clients navigate the complexities of the Australian property market, ensuring they make informed investment decisions that align with their financial goals or aims.