Baby boomer retirement 'to significantly affect house prices'
Article by Mozo
Potential home loans customers may be interested to learn that the impending retirement of many of those in the baby boomer generation is expected to have a significant impact on the cost of property in the country.
This is according to professional economist Leith van Onselen, who noted in an article for the Sydney Morning Herald that the latest Household Wealth and Wealth Distribution report from the Australian Bureau of Statistics shows that this demographic own the greatest amount of housing assets.
Mr van Olsen commented: "The ageing of the baby boomers is projected to reduce Australia's real house price growth by about 30 per cent over the next 40 years compared with neutral demographics."
While they only account for one-quarter of the population, baby boomers also own nearly half of the country's housing assets.
Of the owner-occupied housing assets, 46 per cent are owned by baby boomers, while 57 per cent of other dwellings are owned by them.
This comes after data from ANZ revealed that over the last 24 years, property was the investment option that provided the best returns.
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