By 2034 Australia will have 33 million people and the dream of owning that quarter acre block will be nearly gone.
What will Australia look like, how is our workforce changing, will households be smaller and will we recognise this new version of the ‘Aussie Dream’?Australia is currently the fastest growing OECD nation and in 20 years time we will have an additional 10 million people calling Australia home.
“It’s going to continue to boom, " Mark McCrindle Principal of McCrindle told Channel 7.
“We are adding almost a million people every 2 years. And we are the fastest growing developed nation on the planet at the moment.”
Whilst a population boom brings the bonus of size, economies of scale and diversity in our cultural makeup it can also have negative impacts. The pain will be felt in rising house prices, traffic congestion and increased waiting time for public services.
The increase in housing density will mean that the vast expanse of the Australian outback will remain virtually as it is but the major cities will continue to expand, particularly upwards, with more people living in apartments than ever before.
The cherished Aussie dream of the quarter acre block will be gone, replaced by new land release block sizes which currently average 423 square metres or a tenth of an acre block.
Just as the population will grow larger it will also get older with more people aged over 85 years than ever before. People are living longer and living alone for longer, leading to an increase in at home care and multi-generational households.
The rise in house prices coupled with an ageing population will see many families living living together with mum and dad caring for their own children as well as for their ageing parents.
“We’ve been on this trend of smaller households for a century. We had 4.5 people per household 100 years ago.
"Now we are at 2.6 but we’ve turned the corner and we’ve got slightly larger households now, not that we are having more kids, just that we have more people under the one roof because of housing affordability," Mr McCrindle said.
‘Density’ will be the word to describe Australia in 2034. More people will be living in more households on smaller bocks of land with more houses and apartments per square kilometre. There will be more people but fewer people of working age relative to the growing population.
“We are going to have older workers – the population is growing, Australia is going through a baby boom and people are living linger. Yet the working age proportion is not keeping pace with that population growth.
"So now we’ve got about 5 people for every retiree but in 40 years time we’ll have about half that – 2.7 people of working age for every retiree”, Mr McCrindle said.
As a result people will be working longer with many not retiring until well into their 70’s! However, life expectancy at birth will be almost 90 by then.
Australia will be bigger, older, denser and even more multicultural in 20 years time! Some ‘Aussie Dreams’ will have disappeared such as the ‘quarter acre block’ and along with it the Hills Hoist garden shed and enough space for a game of backyard cricket.
But no doubt new ‘Aussie Dreams’ will come to replace them – it is the Lucky Country after all!
By Mark McCrindle article published via the McCrindle Blog