Building Demand: How Migration and Household Changes Will Shape Demand for Builders

If you are running a growing construction business in Australia, you’ve probably noticed that the market no longer looks the same. You might have had a few clients ask for smaller homes with more efficient layouts, or perhaps you’ve noticed a shift in the types of enquiries, with more interest in dual occupancy builds or townhouses and less in sprawling family homes. You’re not imagining it. The demand for residential construction is changing, driven by some significant demographic shifts across the country.

As a construction business coach in Australia, I work with builders across the country who are navigating these changes. Many of them are well-established businesses with annual turnovers ranging from three million to ten million Australian dollars. They have teams on payroll and a strong reputation within their local markets. These businesses are not just trying to survive; they aim to grow strategically and seize new opportunities. And that is precisely who this article is for.

Let us explore together what these changes are, why they matter, and how you can position your business to take full advantage of the opportunities that lie ahead.

The population is growing, but not how you might expect

In the year 2023, Australia experienced a net migration of 454,000 people. While this is a significant figure, it is important to understand the full context. More people moving to the country does not automatically translate into increased demand for housing. The more accurate picture reveals that household sizes are actually getting smaller. We are increasingly seeing a rise in single-person households, an increase in couples choosing to live without children, and more multi-generational families living under one roof.

What implications does this have for builders and developers? It means that the demand is not merely about accommodating a larger population. Instead, it revolves around the need for more housing units. Since households are becoming smaller, we require more homes to accommodate the same number of people. I often advise business owners to think beyond the traditional four-bedroom family home. There is a growing market for smaller, more efficient dwellings that cater to a variety of living arrangements and lifestyles.

Migration patterns are shaping housing preferences

It’s not just about the number of people arriving; it’s also important to consider who they are and where they are coming from. Recent migration trends in Australia show strong growth from countries such as India, Nepal, and China. These communities often have different expectations when it comes to housing. Higher-density living options, such as apartments and townhouses, are more familiar to them and are often preferred.

I recommend that my builders business coach clients consider how their product offerings align with these preferences. If you are only building detached homes on large blocks, you might be overlooking a growing segment of the market. One of my clients in Melbourne’s western suburbs recently added a dual occupancy option to their portfolio and experienced a 30 per cent increase in enquiries within just three months. Such a strategic shift can truly set you apart from the competition.

Location-specific demand is becoming more pronounced

Not all suburbs are created equal in Australia. In central business districts and inner-city areas, we are seeing strong demand from young professionals and international students who are choosing to live there. These buyers and renters are typically looking for smaller, well-located homes equipped with modern amenities that suit their busy lifestyles. On the other hand, outer suburbs and growth corridors are attracting families and multi-generational households who require more space and greater flexibility to accommodate their different needs.

As a construction business coach, I often advise builders that they should tailor their designs and marketing strategies to suit the specific demographics of the areas in which they are working. A one-size-fits-all approach is no longer effective. If you are building in a suburb with a high percentage of international students, for example, your marketing should directly reflect that reality. This might include considering the language used in your advertising, the type of lifestyle imagery you employ, and the features of your homes that you highlight to appeal to this particular group.

Design preferences are evolving

The mindset that bigger is better is gradually losing its influence. Nowadays, homebuyers are more focused on energy efficiency, intelligent layouts, and living spaces that require minimal maintenance. They are seeking homes that are practical, environmentally sustainable, and built to serve the future.

I have worked with several builders who have successfully adapted their speculative home designs to align with these evolving preferences. For instance, one client in Brisbane introduced a new range of compact homes featuring solar panels, water-saving fixtures, and versatile floorplans. Not only did this attract a different segment of buyers, but it also helped to cut construction costs and improve profit margins.

If you have not yet begun to reassess your designs in this way, now is the perfect time. A construction coaching company like ours can assist you in identifying features that truly add value and those that merely increase expenses.

Marketing needs to keep up with the market

It’s not enough just to build the right homes; you also need to market them effectively. This involves understanding who your buyers are and what is important to them. Are you speaking their language? Are you showcasing the lifestyle they aspire to?

I often suggest that builders update their websites and social media platforms so they reflect the changing market conditions. Use imagery that appeals to your target audience. Highlight features such as walkability, energy efficiency, or multi-generational living.

One of my clients located in regional Victoria revamped their marketing approach to focus on low-maintenance homes for people downsizing, and they experienced a 40 per cent increase in qualified leads.

Your marketing strategy as a builder should develop alongside your product offerings. If you are still relying on the same messaging you used five years ago, you might be missing out on potential opportunities or revenue.

Use data to drive your decisions

The Housing Industry Association’s Housing Australia’s Future report is a valuable source of insights for anyone involved in the housing industry. It provides detailed information on where the population is increasing, what types of homes are in demand, and how consumer preferences are evolving over time. However, data by itself is only meaningful if you understand how to interpret and utilise it effectively.

As a business coach specialising in the construction industry, I assist my clients in analysing this data and transforming it into actionable strategies. This could involve modifying your service offerings, exploring new markets, or adjusting your pricing strategies to stay competitive. For example, one client utilised demographic information to identify a suburb with a high demand for dual-occupancy homes and subsequently established a partnership with a local developer. That single strategic move resulted in an additional 1.2 million Australian dollars in revenue over the course of a year.

By taking proactive steps like these, your business can be positioned for sustainable long-term success. You will be able to build homes that meet the needs and wants of your customers in the locations they prefer, and market these properties in a way that truly resonates with your target audience.

Final thoughts

The construction demand forecast is very clear in Australia: there is a significant need for more homes across the country. However, it’s not about simply building more of the same types of properties. Builders who are able to understand the shifts in demographics and adapt their offerings accordingly will be the ones who succeed and thrive in this environment.

If you are prepared to adopt a more strategic and thoughtful approach to growth within your business, I would be pleased to support you. At Tenfold Coaching, we specialise in working with established builders who are keen to scale their operations in a sustainable and profitable manner. Whether you require assistance in refining your builder marketing strategies, adjusting your product mix to meet market demands, or interpreting the latest data and trends, we have the necessary tools and experience to guide you.

Let’s work together to build something outstanding in the Australian building industry.