Grey divorcées are transforming the property market. What does it mean for you?
The housing market is getting quite a shake-up from 'grey divorcées'- seasoned females who've decided to downsize their homes to match their evolving lifestyle preferences.
I’m dubbing it the Silver-haired Separation Boom!
With more and more folks aged 50 and beyond deciding to part ways, the census and divorce statistics spotlight the ever-changing stage of Australian real estate.
These older Aussies are turning the real estate scene into a retirement party, looking for properties more in tune with their post-divorce vibe.
The solo dream: the rise of single households
The most recent census data reveals an intriguing trend. Single households are on the rise in Australia, more prevalent than ever. Having a comfortable, self-owned dwelling is proving to be increasingly appealing among single females.
Despite the hurdles of saving for a down payment and handling mortgage responsibilities independently, they are now having a significant influence on the housing market.
Downsizing dreams
According to ABS figures from 1996 to 2016, while the overall divorce rate was on the decline, it was on the rise for women aged 45 and older. In 2021, divorces among couples married for over 20 years accounted for over a quarter of all splits.
It's as if a sea change is happening in the world of long-term love and commitment, and silver separations are rising. They're bidding farewell to the marital abode, and they're in pursuit of properties that match their evolving lifestyle preferences.
What does this mean for homebuyers?
Increased demand: An influx of older divorcées looking for new housing will likely drive up demand in specific segments of the property market. These buyers often seek smaller, more manageable homes, leading to increased demand for townhouses and single-story residences; however , I am finding that 3 bedroom apartments are on the top of their wishlist due to lower maintenance responsibility, overall convenience and security.
Property values: Depending on the local dynamics, increased demand can influence property values. In areas with limited housing supply and high demand, property values may rise if cashed-up divorcées come looking, affecting affordability for all buyers. I have seen it many times at auctions where the deep pockets of this particular segment of buyers are prepared to keep bidding against each other when everyone else is out, resulting in purchase prices far beyond the true value of the property.
Local market variations: Areas with a higher concentration of retirees might experience more significant changes in property demand and values. In contrast, other areas may see less pronounced effects.
Supply and inventory changes: I am hopeful that the surge in demand from older divorcées could lead to changes in property inventory, as they are not the only segment of the market looking for these elusive 3 bedroom apartments and lower maintenance duplexes - many young couples and families have been priced out of the Torrens titled homes market and are therefore having to stay in strata for longer. Builders and developers may respond to this increase in demand by constructing homes that meet the actual need of the buyers, fingers crossed!
This list is not exhaustive, and other notable factors could influence the property market. However, it's crucial for those who have gone through later life separation to consider their financial obligations and how the home will fit their needs for the next 20 years or more.
Talking to experts when it comes to avoiding substandard homes or identifying strata responsibilities and liabilities is a smart move, especially if you’ve never bought these types of properties.
If you need help finding your perfect property match, our team is here to help.