Where the young renters are
The Census allows the comparison of a wide range of data on housing choices and trends and analysis of this can provide very interesting information for investors.
One such topic is the average ages of renters across Melbourne.
Broadly speaking it reflects the broader housing trends in the city, the inner and outer suburbs have more young renters (and mortgage holders) and the middle suburbs more middle age renters.
Outer growth suburbs, such as Derrimut and Doreen where the average age of renters is 26 have many younger people due to the lower direct housing costs. In the outer east the average age of renters in Lysterfield and Cranborne North was 28.
The suburbs that are exceptions to this rule are in the inner city and associated with tertiary institutions. In Parkville, Carlton and Melbourne the average age is under 30 as a significant portion of the rental homes are occupied by young students. This is also the case in Clayton, Huntingdale, Oakleigh East and Notting Hill around Monash University.
Whilst there are no suburbs where renter’s average age is above 40 there are a few where their average ages are between 35 and 39. They are typically the more expensive ones including those close to the CBD and bay; Port Melbourne, Albert Park and Middle Park. These suburbs underwent significant change over a decade ago and this is reflected in higher housing costs and less young renters. Toorak and Canterbury, which very high median rents unsurprisingly have older renters.
Analysis of this data can assist investors as they search the right property as ensuring the rental home has a high occupancy rate is critical for a successful investment.
Courtesy of REIV.com.au