Episode Details

Yet today, I'm going to be chatting with leading demographer and futurist Simon Kuestenmacher about the demographic, social, and economic trends that will shape 2022.

This is the type of information property investors, business people, and entrepreneurs need to understand to make better-informed decisions. And, of course, I'll be sharing my popular mindset message at the end.

Predictions For the Year 2022

The coronavirus pandemic was a great reminder of how difficult it is to make accurate forecasts, especially about the future.

But recently, demographer and futurist Simon Kuesetenmacher, the co-founder of The Demographics Group, was prepared to stick his neck out and make 22 predictions about what 2022 holds for Australia in his column in The New Daily. And I'm looking forward to discussing them today.

1. Millennials continue on to family-sized houses.

Australia's largest generation reaches the family formation stage of the lifecycle and continues to leave their hipster neighbourhoods in the capital cities, searching for family-sized homes.

2. As the decentralization of the population continues, local governments face predictable challenges.

As growth in the regions continues, local councils must make enough land available to accommodate the increased demand for housing.

3. Hybrid work will dominate.

Working from home is here to stay, but exclusively virtual working arrangements will remain the exception.

4. House prices will continue to rise.

Demand for family-sized housing is guaranteed to be high due to the Millennials. Soon migrants will be returning to the market. Government has no interest whatsoever in pushing house prices down.

5. The average Australian house will get bigger in 2022.

Lockdowns pulled functions from outside the home into the home. We entertain, eat, exercise, study, work at home more often. Some (not all) of these changes will stick, and require more space.

6. As we are cocooning more, Bunnings, Barbecues Galore, Harvey Norman, and co will be doing well!

We spend less money on traveling overseas, save money by avoiding the daily commute, get away with owning fewer formal items of clothing, and have more money available to throw around. A fair bit of this disposable income will be used to make the family home more liveable.

7. One size doesn't fit all.

Customer segmentation will be trickier in 2022. Different levels of lockdown restrictions bred different habits across the country.

8. The socio-economic divide widens.

The pandemic didn't impact all of us in the same way. Highly skilled workers kept their jobs and many industries saw big profits while lower-skilled workers lost their jobs at high rates.

9. Baby Boomers will act with a sense of urgency.

They feel cheated out of two healthy years of their retirement. They are keen to travel, spend time with the grandkids, and feel "it's their time now".

10. The trend towards sliding into retirement continues.

In 2022 a higher share of workers in their 60s and early 70s will remain in the workforce in a part-time capacity. This means downsizing is pushed backward too.

11. Gen X is taking over even more leadership positions.

As Baby Boomers leave the workforce it's Gen X's time to dominate company boards and C-level roles. Xer leaders introduce generous parental leave policies and continue to fight for equal pay.

12. The healthcare sector continues to boom.

Australia remains a rich and aging country. No industry will grow as fast as healthcare.