Boomer times are back

Right now, the baby boomer effect is likely to push up property prices, keeping the market buoyant. Baby boomers – 76 million of them were born around the world between 1946 and 1964 in the population boom after World War II – are commonly regarded as the wealthiest group with the most disposable income.

Many Australian boomers own family homes and have spent years investing, be it in property, shares or government bonds.

Despite this long-term theme of baby boomer home ownership, most real estate commentary is focused on millennials getting into the market and government incentives to help increase ownership.

But with the ageing of the baby boomer generation leading to the sale of many large family homes, we will start to see an increase in house and unit prices across Australia, especially for villa-style, smaller dwellings. This will encourage more investment in the market from both domestic and international investors, which will chew up the supply.

Baby boomers are back in the property market for two main reasons:

Falling interest