Australia’s population rose by 1.7% in the year to December 2024, an increase of 445,900 people, according to the latest figures from the Australian Bureau of Statistics (ABS). While that’s slower than the record pace of 2023, it represents a strong rate of growth above long-term averages, and that’s good news for property investors.

Population growth underpins demand for housing. More people means more households, and more competition for homes in the areas where people want to live. When housing supply can’t keep up, this can lead to capital growth and rising rental yields.

Growth moderates from record highs, but stays elevated

Annual population growth peaked at 2.53% in September 2023, the highest rate in over 15 years, before gradually easing to 1.7% by the end of 2024. This trend reflects a post-pandemic correction.

During 2020 and 2021, international migration virtually stalled. The reopening of borders triggered a sharp rebound, leading to a temporary population surge. Growth has since eased toward longer-term trends. 

For context, Australia’s average annual population growth over the past 30 years has been around 1.4%, underscoring that the latest figure remains well above historical norms.

Despite this moderation, the long-term outlook for population growth remains solid. As the ABS graph of possible scenarios below shows, Australia’s population could reach 39.2 million by 2071 under the medium growth scenario – a 57% increase from today.

The strongest projected growth is concentrated in New South Wales, Victoria and Queensland. These are the same states already facing housing supply pressures, which will mean demand for housing is likely to remain strong across Australia’s largest cities and regional hubs.

More people, more demand

When the number of people increases faster than new homes can be built, it creates pressure in the housing market. Construction activity has declined and new housing supply remains well below demand, with the number of dwellings commenced in 2024 falling 4.4% to just 41,911, according to the ABS.

And looking ahead, the pipeline remains tight. After some signs of recovery towards the end of 2024, the number of dwellings approved has fallen every month in 2025, with just 14,633 approved in April 2025. 

The federal government is aiming to facilitate the building of 1.2 million new homes in the five years between July 2024 and July 2029. But, so far, it’s falling short, with Master Builders projecting just over 1.04 million homes will be completed, based on current construction and approval rates.

Meanwhile, rents are climbing and vacancies remain low. The latest vacancy rates from SQM Research showed a further tightening in the market to 1.2% nationally in May 2025. Asking rental rates have grown consistently year-on-year, up 4.3% for houses and 4.1% for units. 

What this means for investors

The combined effect of sustained population growth and a constrained housing supply directly contributes to rising rents. New residents often enter the rental market first, and with limited new housing stock coming online to match this demand, vacancy rates are likely to continue contracting. 

This dynamic is particularly pronounced in major urban centres like Sydney, Melbourne and Brisbane, which attract a large share of new arrivals and are already facing tight rental markets.

Beyond rental income, population growth is a crucial driver of long-term capital growth in property values. A consistently growing population ensures a steady pool of potential buyers, which is essential for a healthy property market. 

This ongoing disparity between supply and demand suggests that upward pressure on property values is likely to continue in the near future.

How to position yourself to benefit from long-term growth

To make the most of this environment, investors need a clear strategy. With so many variables at play, from population projections to planning pipelines, working with a qualified property investment strategist like SAFORE can make all the difference. 

A strategist can help identify locations with long-term growth potential, avoid oversupplied markets and ensure data, not guesswork, backs each investment decision. It’s a smarter, more informed way to build wealth through property in a market shaped by demographic shifts.

Ready to turn population trends into property opportunities?

At SAFORE, we help you invest with strategy, not speculation. By translating population forecasts, housing supply data, and rental trends into clear insights, we identify areas where long-term demand and limited supply can drive real returns.

Call us on 1300 69 77 67 or click here to see how our data-driven approach can position your portfolio for lasting growth.