Last week we looked at how the great Australian dream of owning a home has become vastly redefined. This week we continue to explore why these new trends are coming about… from changing lifestyle demands to a shift in mindset, and much more!

Why the change? When you think about it, this strong shift to this new “vertical community” – where people are opting for apartments over large suburban blocks - makes complete sense!

Let us explore some of the most viable reasons for this new shift…

1.     Less is more

Today we live in a time-poor society that is being driven by the beauty of minimalism. Many people these days are working much harder than ever before and no longer have the time to spend on the upkeep of a big yard or the maintenance of a large suburban home for that matter.

For many, it really is a simple case of “less is more”.

2.     House prices on the up

Housing prices are also a big contributing factor. Recently on Channel Nine’s, Weekend Today, social researcher, MarkMcCrindle, says the profile of the current “average” Australian looks somewhat like this:

Looking at this, you can see the challenge is that the average house is about 10 times the average annual earnings. Whereas, rewind four decades ago and house prices were only about five times the average annual income –clearly house prices are growing faster than wages.

3.     A shift in mindset

In a recent article by the Huffington Post, McCrindle also talks about how Australians were also getting more comfortable with the idea of living in a unit; describing this shift in mindset as a “massive attitudinal change”.

"(An apartment) used to be for people who couldn't maybe afford that traditional Aussie dream, the detached house, or older people downsizing or young people renting but that's not the case now," he said.

"They're choosing it for lifestyle reasons... the unit developments now largely are taking place where there are built environments around cafe culture and close to art, restaurants and walkable communities."

He said another attraction in many new developments was that residents "don't need to rely on a car and there's good access to public transport".

 He said the shift was also being seen among families with children, who were taking advantage of unit developments designed to cater to kids. McCrindle even mentions the fact that some high-profile developers today are now even putting child care centres into their developments to help attract families to living in the CBD space.

So with population growth, a love for minimalism, higher property prices and an increased desire for inner-city lifestyle… it is no wonder we are seeing a surge in families trading traditional suburban life for high density lifestyle, or the “vertical community” as McCrindle puts it.

Furthermore, recent BIS Shrapnel research shows that a record 19,450 apartment dwellings were commenced in Sydney in 2015/15; this number over double the reported figure of 8,300 in 2010/11. It is a similar story in Brisbane, where apartment developments have also surged.

With more Australians opting to live in apartments closer to the café culture and with rent numbers on the up from a quarter to a third of Australians – as we saw last week. The question is why? What are the benefit to renting over committing to a mortgage?

Why are more people opting to rent?

One of the main factors we are seeing derived from these current trends is this notion that Australians want to travel more freely and move house more often – renting a property allows them to do that.

McCrindle says that renting allows Australians to live in an area that they perhaps could not afford to buy in.

“It’s just this ability to lock up and leave that place and travel and spend their money, not on a big mortgage but on other lifestyle pursuits.”

Does that mean that people have given up on the Australian dream of owning a quarter-acre block… opting for convenience and freedom over space and long-term commitment?

Truth be told, about 30 per cent of Australians are renters, which is actually a higher percentage than those who have actually paid off their mortgage. But in actual fact, with these new trends we are starting to also see a new breed of investor.

Introducing the rent-vestor

A lot of people are getting good affordability out of renting… they are called rent-vestors. These are people who are renting but have perhaps bought a house on the outskirts of town.

While it may not be suitable for them to live there but they still get the asset-appreciation on that property and, meanwhile, they live where they want to live so enjoy the lifestyle benefits in the process.

As you can see it is evident that this new growing trend of enjoying the urban lifestyle and the freedom to come and go as you please, seems to be the way our property market is shifting. This is great for CBD apartments and the investors that buy them.

When it comes to your next property purchase, this new wave of living is certainly food for thought. Maybe it is time to trade up that quarter block and buy an apartment in the heart of Brisbane? Live there or rent it out… either way, it is clearly a win-win!

To take advantage of this new trending city lifestyle, contact HSBP on 0419 782 133 - the experts in Brisbane’s CBD property market!

For more information on Mark McCrindle or to visit his website, go to  http://mccrindle.com.au.