New modelling highlights a growing divide in Australia’s population trends, creating both risks and opportunities for residential property investment.

While inland towns are shrinking, coastal and lifestyle regions are booming, according to data from demographer Bernard Salt and data scientist Hari Hara Priya Kannan.

Between 2014 and 2024, Australia added 3.7 million people, mostly to capital cities and coastal towns. This pattern is expected to continue, with a further 3.6 million people projected by 2035.

Retirees are heading for regional hotspots, while younger generations are moving from smaller towns to urban centres, reshaping demand for housing.

This demographic movement presents opportunities for investors to focus on high-growth areas such as the Gold Coast and Wyndham, where strong population growth is likely to support long-term capital gains and rental demand.

In contrast, towns like Horsham and Charters Towers face declining youth populations and ageing communities, which may impact rental yields and property values.

Salt cautions that regional service shortages could worsen without intervention: “We need a national demographic audit to identify where the greatest shortages of essential workers will emerge and act on it.”

For investors, the key lies in tracking these demographic trends. With the right planning and strategic property choices, there’s significant upside in growth regions, especially those set to benefit from future infrastructure investment and lifestyle appeal.