In fact it only requires 1 in 200 households to welcome another person. Seems realistic to me, considering how popular this trend is amongst my peer group. Also, considering that the average dwelling is much larger now than when the occupancy rate was 2.6 back in 1982, such a shift would barely be noticable.
I have mentioned before how this adjustment in occupancy rate occurs, for example:
- youths stay home with parents longer
- group households rent spare rooms
- elderly parents move in with children’s families
- other lone relatives move in
- when families relocate they choose smaller houses… and so on
So I caution the property bulls to be realistic with their investments. Don’t expect a boom of 6 years to be followed by a six month bust. If you want to get into the market now, buy on the high rental yield and find good tenants. And of course, don’t forget about location.