Australia has forsaken it’s young

Between the mid-1990s and 2004, Australia saw a strong rise in household formation for the 25 to 34 age demographic.

With an adequate supply of new homes compared with dwelling completions, as illustrated by the chart below from AMP’s Shane Oliver, the nation’s younger demographics were able to form households in greater and greater numbers.

Then, as the ‘Big Australia’ era kicked off in the final years of the Howard government, housing demand growth began to significantly outstrip growth in new supply.