Demographic Shifts, Affordability, and Future Opportunities: A Look at 2025
By Leigh Martinuzzi from MPG
As we navigate 2025, Australia’s demographic trends are painting a fascinating picture of how and where we live. From migration-driven population growth to shifting lifestyle preferences, the property market continues to evolve in response to these changes. While much of the conversation has focused on urban expansion and affordability challenges, I’d like to explore some key takeaways and share my own perspective on what these trends mean for the future.
Melbourne’s Expansion and Affordability
Melbourne and Greater Victoria are emerging as intriguing prospects for demographic shifts. As affordability continues to drive buyers towards outer suburban areas and regional hubs, greenfield developments are gaining traction. These large-scale projects offer the promise of affordable housing, but they come with significant challenges.
The infrastructure required to support these developments—roads, schools, public transport, and healthcare—represents a substantial cost. While these areas may initially seem appealing, the long-term viability of greenfield developments as desirable places to live could be questioned if infrastructure lags behind population growth.
There’s also the issue of land use. Expanding into greenfield sites often comes at the expense of agricultural land. As a nation, we need to consider the long-term implications of urban sprawl, both for food security and environmental sustainability. Personally, I believe the focus should be on optimising urban footprints—developing closer to existing infrastructure and services—to create more sustainable and connected communities.
Opportunities for Downsizing and Over 50s Communities
The aging population is another key demographic trend reshaping the property market. Over-50s lifestyle resorts like GemLife have gained significant traction in recent years, offering resort-style living tailored to this demographic. However, while these communities cater to many, affordability remains a challenge for some retirees.
With rising house prices, not all older Australians have the housing equity required to access these premium options. This highlights the need for more affordable downsizing solutions, as well as innovations in in-home care models. Supporting aging Australians to stay in their homes for longer, with access to quality care, is not only cost-effective but also aligns with many people’s preferences.
A Broader Shift in Buyer Preferences
Across the board, affordability is influencing buyer behaviour. Younger generations are increasingly prioritising smaller, more affordable housing options such as units and townhouses, particularly in areas with strong lifestyle appeal and proximity to transport and amenities. This trend is particularly evident in Melbourne’s fringe suburbs, where greenfield developments offer entry points into the property market.
At the same time, the luxury segment continues to attract buyers in regions like the Sunshine Coast, where lifestyle remains a key driver. However, the demand for affordable housing is a reminder of the widening gap between what buyers need and what the market is delivering.
Final Thoughts
The demographic changes we’re seeing in 2025 present both challenges and opportunities. While population growth and housing affordability will continue to shape the property market, there’s a need for smarter urban planning and a focus on sustainable, long-term solutions.
As we look to the future, balancing affordability, infrastructure, and environmental sustainability will be critical. Whether you’re considering a move, downsizing, or exploring investment opportunities, understanding these trends can help you make informed decisions.
If you’re ready to take the next step or simply want to chat about the market, my team at Martinuzzi Property Group is here to help. Let’s make 2025 a year of opportunity and growth.