Why do we move?

A real look at Aussie household mobility

Aussies move around a lot. In fact, according to the ABS, more than 40% of households changed addresses over the past five years. Every year, about one in seven of us packs up and shifts home. But not all of us move at the same pace - renters move more than three times as often as homeowners, and younger folks change addresses far more frequently than retirees.

So why do people move?

Housing reasons top the list. Roughly three-quarters of all moves are driven by the need for better, bigger, cheaper, or just different housing. Wanting to buy a home is the #1 reason, followed closely by needing more space, lease expiry, or the push to downsize.

Lifestyle comes next - better schools, nicer suburbs, sea or tree changes - especially for families or empty nesters looking for a different pace.

Work-related moves are also common, especially for long-distance or interstate moves. Mining and infrastructure booms still attract, while downturns send people packing. About 30% of interstate moves are job-related.

But the big shift recently?

Cost of living. In 2023, reducing expenses became the biggest reason Australians moved. That’s a first. About 35% of movers cited affordability pressures - up threefold on the previous year. Rents too high? Mortgage too steep? People are relocating to keep a roof over their heads. It’s especially biting for young adults aged 18–24.

Government policy plays a role here too. Stamp duty puts the brakes on mobility. One recent study reckons abolishing stamp duty in NSW would unlock 100,000 extra moves a year. The ACT is ahead of the curve here, replacing stamp duty with an annual land tax. All states and the NT should follow.

And let’s not forget lifestyle dreams. People still move for sun, surf, and space. During Covid, many escaped the cities for a slower pace. Some stayed. But today, affordability trumps all. We’re seeing a shift from aspiration to necessity.

Still, the fundamentals remain

People move to start out, trade up, downsize, get closer to family, or find better opportunities. Housing needs, family changes, work opportunities - and increasingly, the cost of staying put - drive mobility.

And most of us, let’s be honest, still want a detached house with a yard. High-rises may be in vogue with the planning set, but the great Aussie dream hasn’t died - it’s just harder to afford.

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Policy matters

Get the mix wrong - over-regulate, over-tax, under-build - and you get stagnation. Get it right, and people can move where they need and want to go.

The real estate market isn’t just about prices and yields. It’s about people, their lives, and the choices they’re forced - or inspired - to make.

Time to think less about theory and more about what actually drives Australians to move house.

PS I wrote my usual piece. Wasn’t feeling it, so sent my words to ChatGPT, and the above is what it sent back. Hmmm. I remain unconvinced. Comments?

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Reuse terms + disclaimer

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Be quick selling fast!

In this session - and in relation to the Australian housing market - I will cover:

• The tools needed to really understand what is going on

• Ten major trends that will have the most impact over the next decade

• The key things that buyers and tenants will pay a premium for

• How to pick a winning location

• What you should buy or build in this increasingly uncertain world

Paid Missive subscribers also save 10%.

The investment is $495 including GST. Limited to 25 peeps max.

To find out more and get your tickets, click on the red blob below.

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