Who’s buying, and what homebuyers want, shapes which properties hold their value. Whether you’re buying a home or an investment, it helps to know what the next buyer, or your future tenant, will be looking for.
Below, we look at what different generations of Australian buyers ask for, and what it means for your next purchase.
Baby boomers: downsizing without compromise
Many baby boomers are selling the family home, but they don’t want to give up space or quality.
- Single-level living, or a lift, with low-maintenance gardens.
- Staying near family, health services and the area they know.
- Enough room for visiting grandchildren and storage.
What it means: well-located villas, townhouses and larger apartments in established suburbs have a deep pool of downsizer buyers. That supply is limited in many areas.
Generation X: space for the family
Gen X buyers, on the other hand, are often at peak family size and peak income.
- Good school catchments are often the deciding factor.
- Extra living areas, a home office and room for teenagers.
- Larger blocks with a yard and parking.
What it means: as a result, family homes in strong school catchments tend to keep their appeal, even when the wider market slows.
Millennials: trading off location and size
Millennials make up a large share of today’s buyers, and many are buying investment properties before (or instead of) a home to live in, a strategy often called “rentvesting”.
- A work-from-home space is now a must for many buyers.
- Access to transport and the lifestyle of established suburbs.
- Energy efficiency: solar, insulation and good orientation reduce running costs.
What it means: properties with a usable study or flexible room, and good energy performance, are easier to sell and to rent.
Generation Z: getting a foot in the door
Gen Z buyers, by contrast, are just starting out, so affordability is everything.
- Entry-level apartments, townhouses and house and land packages.
- Heavy use of government schemes and family support. See our first home buyer guide.
- Research done online. Before they inspect, they compare listings, sold prices and suburb data.
What it means: because of this, demand is strong at the price points where first home buyer schemes apply, which supports that end of the market.
What homebuyers want, whatever their age
- Outdoor space: a usable yard, courtyard or balcony.
- Lower running costs: solar, insulation, efficient heating and cooling. The government’s Your Home guide explains what makes a home energy efficient.
- Convenience: walkable shops, transport and services.
- Good layout: natural light, storage and flexible rooms.
What this means for your next purchase
In short, knowing what homebuyers want helps you look past your own taste. That’s why, when we assess a property, we ask who will want to buy or rent it in five to ten years. A home that suits several buyer groups, like a low-maintenance townhouse near transport that works for a downsizer, a young couple or a tenant, has a wider market than one that suits only a narrow group.
If you’re buying a home or an investment property and want a second opinion on what will hold its value, book a free strategy call.
General information only. This article reflects general market observations and doesn’t consider your personal circumstances. It isn’t financial advice. Seek independent professional advice before buying.
