A national property market researcher has warned an influx of Baby Boomers into the Bendigo property market during the next 20 years could have a “significant impact” on housing demand.
The research, by Propertology market analyst Simon Pressley, included Bendigo in a list of regions targeted by the older generation because of poor retirement savings and low superannuation balances.
Mr Pressley said unlike younger generations, Baby Boomers had only started building their superannuation funds relatively late in their working lives, and at lower rates, meaning up to 90 per cent would be wholly or partly reliant on a government pension.
“This generation didn't start getting super the day they entered the workforce,” he said.
“Your super today is probably 9.5 per cent of your salary, but back then it was 3 per cent and they were already 15, 20 years into their work life.”
But despite the impact on housing demand, Mr Pressley said the trend would be unlikely to squeeze out younger-generation first-home-buyers
“We are talking about 4.45 million people, 21 per cent of Australia’s population is our Baby Boomer generation, so ... you only need a small percentage of that and it’s going to have some impact on housing demand,” he said.
“[But] to put some context with this report, Baby Boomers are really those born from 1946 to 1964, they started exiting the workforce from 2011 out to about 2030, so it’s not like they’re all, en masse, going to quit their jobs tomorrow or anything like that, and they certainly won’t all relocate either.”
Mr Pressley said Bendigo’s housing market was attractive to Baby Boomers because it was more affordable, and the same opportunities existed for Gen Xs and Gen Ys to relocate outside the capitals.
“I don’t believe every Gen Y’s complaining about housing affordability, but those who are, are probably living in the big capital cities,” he said.
“[They should] consider places like Bendigo for the same reasons some Baby Boomers might, there’s no rule that says I must live in the city.”