DDR MC

Page 7

2.0 MELBOURNE

‘By 2031 Melbourne is

2.1

projected to overtake Sydney as Australia’s most populous city’

Population & Demographics As of August 2018, ABS reported

is based on the evolution of a

that the population of Greater

population’s age structure, gender

Melbourne reached 5 million

or living arrangements. The way we

residents. Melbourne has added

live provides policy makers with the

over 120,000 new residents each

information they need to plan for

year for the past three years – the

future demands for housing, land and

highest of any Australian city.

infrastructure.

With population growth like this, Melbourne needs to add 45,000 new dwellings per year, or nearly 1,000 per week. A record 18,000 Australians migrated to Victoria in 2017, largely because of housing affordability and job creation. Melbourne has been growing faster than Sydney over the past decade, according to the Australian Bureau of Statistics (ABS), and is set to become Australia’s most populous city by 2031. To accommodate for this growth, the city will require an additional 1.6 million dwellings.

The current household size of 2.7 people and the growing proportion of lone person households suggest that the dwellings required could be provided through apartment development. As at June 30th 2018, the lone person household and coupled families without children make up 49% of Greater Melbourne’s population. This means that half of Greater Melbourne’s households are well suited to apartment living. The number of lone person households is projected to grow 59% by 2031, the fastest of the varying household

Assessing the population structure

types. Strong house price growth in

and how this may change in the

Melbourne’s metropolitan areas is

future is critical to understanding

likely to strain affordability and result

where the demand for property

in an increase in demand for more

will come from. Government policy

affordable apartment dwellings.

4


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