The word “renters” might be music to a Landlord’s ears, but for others it may have different connotations. Renters are often thought of in terms of broad stereotypes – young, single, apartment dwellers, living in hip, inner-city locations with convenience and lattes on call.
But is that really the case? Australia has more than 9 million private dwellings, of which about 2.3 million are rental households. Just more than half (55 percent) of those dwellings are detached houses and only 30 per cent are either units or apartments and 15 percent are semi-detached or townhouses. One in every five detached houses is rented out on a permanent basis, half of the country’s townhouses are tenanted, as are two-thirds of the nation’s apartment.
In terms of rented dwellings across the nation, there are:
- 1.3 million detached houses
- 210, 000 villas or single storey attached homes
- 145, 000 townhouses or double storey row/terrace homes
- 490, 000 low-rise units
- 170,000 medium to high rise apartments
- 15,000 caravans
One myth that our research dispels is that the vast majority of renters are not located in downtown settings, but rather live in suburban locales. And most reside in detached dwellings and low-rise (one or two storey) walk up units – many of which are some distance from inner city.
Singles comprise the largest of the renter groups at just under 30 per cent and 645, 000 households.
The next largest rental group with a 23 per cent market share or 520, 000 households are childless couples or couples whose children have flown. And 200, 000 renters live in what the ABS calls “group households.”
Yet, two out five households are families with children living at home with half of them being single-parent homes.
Seven out of ten units and apartments in Australia support one-and-two person households. And this might suggest tight apartment designs-the current flavour of the month-are warranted. But the higher the apartment building the fewer the proportion of single person households – they drop, for example from 52 percent in walk-up units to 39 percent for high-rise apartments.
For would be investor/landlords in search of property, here are some considerations to keep in mind:
- Rental demand take places across the whole urban landscape – it does not just pertain to the inner-city or medium/high-rise apartments.
- Rental space often needs to be shared. It also needs to be designed in such a way as to allow flexibility. The key to getting more rent is leasing space that can be easily shared.
- One-bedroom apartments are a worthy investment consideration, but one must be careful not to buy something so tight that it cannot be occupied for any length of time. Ditto for two-bedroom apartments. Useable space -and the right space matters when it comes to apartment living.
Source: The Courier-Mail january 12-13, 2013