Will baby boomers leave Australia’s capital cities when they retire?

houseAs baby boomers start to reach retirement age, we might start seeing a mass exodus from our major cities.

According to a new report by CoreLogic, those aged 65 years and older tend to prefer living in coastal or regional townships, with Victor Harbor (SA), Queenscliffe (Vic), Great Lakes (NSW), Yorke Peninsula (SA) and Glamorgan/Spring Bay (Tas) having the highest proportion of people over the age of 65 living there.

There were a total of 50 top regions mentioned in the CoreLogic report and not one of them was located in a capital city area.

This tends to make sense when you consider what retirees look for in a home. Those of retirement age no longer need to think about being situated close to work. Instead, they have the luxury to move to lifestyle locations and may prioritise living near family or being close to good amenities. Or maybe they would just prefer a place that is near the water and or where they can go for long bush walks.

Not to mention that those who currently own homes in places like Sydney or Melbourne have the options of selling up and buying in a regional location with plenty of cash to spare.

All but three of the top 50 council areas for over 65s had a median house value below $400,000 (considerably less than the median prices in Sydney or Melbourne suburbs).

Retirees’ favour for regional areas might have an impact on real estate markets in the coming years.

CoreLogic’s data shows that in June 2015, there were 3,569,020 Australians aged 65 years or older, which was equivalent to 15.0% of the total population.
Over the next 15 years 4,294,625 persons are set to reach 65 years of age, this will bring the proportion of over 65s to 18.1%.

With more people reaching retirement age, we may see an increasing amount of people selling up to a live the quiet life in regional towns and the latest CoreLogic research might just provide some insights into where they will be moving to, which could be worth looking at if you’re considering investing in a regional area.

To read the full CoreLogic report, visit www.corelogic.com.au.