Who lives in the city centre?Posted: June 19, 2011 Filed under: Housing, Planning, Population | Tags: apartments, Core, demography, Inner city, Maryann Wullf, Michele Lobo, migration, Monash, overseas students 11 Comments
There’s so much misinformation being put about lately regarding apartments and city centre living that I thought it would be timely to put some basic facts on the table. Fortuitously, I recently came across a paper by two academics from the School of Geography and Environmental Science at Monash University, Maryann Wullf and Michele Lobo, published in the journal Urban Policy and Research in 2009. It’s gated, but the tables I’ve assembled summarise most of the salient findings.
The authors examine the demographic profile of residents of Melbourne’s Core and Inner City in 2001 and 2006 and compare it against Melbourne as a whole i.e. the Melbourne Statistical Division (MSD). They characterise the Core as “new build” (60.6% of dwellings are apartments three storeys or higher) and the Inner City as “revitalised”.
The Core is defined as the CBD, Southbank, Docklands and the western portion of Port Phillip municipality i.e. Port Melbourne, South Melbourne and Middle Park. They define the Inner City as the rest of Port Phillip and Melbourne municipalities, plus Yarra and the Prahran part of Stonnington municipality. So what did they find? (but let me say from the outset that the implications and emphasis in what follows is my interpretation of the data, rather then necessarily theirs).
A key statistic is that the share of Melbourne’s total population who live in the Core is extremely small – just 1.7%. So however interesting the demography of the Core might be, it represents just a fraction of the bigger picture and accordingly we need to be very careful, I think, about assuming what goes on there reflects what the other 98.3% of Melburnians think, want or are doing. And the same goes for the Inner City, which has just 5.9% of the MSD population.
When the authors looked at the age profile of the Core they found it is astonishingly young. The proportion comprised of Young Singles and Young Childless Couples is an extraordinary 44.0%. The corresponding figure for Melbourne as a whole (i.e. the MSD) is 15.1%, or about a third the size. And just to emphasise the point of the previous para, note the Core has 26,486 persons in these two categories, whereas the MSD has 542,481.
Households in the Core also tend to be small with only 21.6% having children. In comparison, the MSD might as well be another country – the corresponding figure is 53.3%. Unfortunately the researchers don’t break down the large Young Singles group by household size, but given the predominance of apartments in the Core, it’s a fair bet they tend to live in one and two person households.
I expect it will surprise many to see that Mid-life Empty Nesters make up much the same proportion of the population in the Core (and Inner City) as they do in the MSD. They’re also a small group – they account for just 8.3% of the population of the Core and hence their impact on the demography of the city centre is really quite modest. Read the rest of this entry »
Do higher travel costs make the fringe unaffordable?Posted: October 27, 2010 Filed under: Cars & traffic, Growth Areas, Housing | Tags: affordability, Cardinia, Casey, fuel economy, growth areas, Monash, transport cost 5 Comments
A common argument is that households who settle on the fringe because housing is more affordable end up worse off because of higher transport costs. They are forced to buy a second or third car and they use more petrol because they have to travel further.
Of course there’s an assumption here – that ordinary families actually could find a suitable dwelling, at an affordable price, in an area where transport costs are significantly lower than they would be on the fringe.
Consider the municipalities of Casey and Cardinia, which together comprise the largest Growth Area in Melbourne. At around 45 km and 55 km respectively from the CBD they are also the most distant fringe growth areas.
The median price of an established house and garden in Casey (Narre Warren) is $350,000. Now compare that with the City of Monash, which stretches between 13 km and 24 km from the CBD. The median price for a house in this municipality is $780,000 (although in Clayton it’s $618,000).
A more likely alternative for a settler in Monash who’s primary concern is affordability would be a unit. However the median price for a unit is $464,000 ($401,000 in Clayton).
Thus the Growth Area has a considerable advantage in price and size – it’s much cheaper and offers a three to four bedroom house with a garden compared to a two bedroom unit. Clearly a Monash location would need to offer a considerable saving in transport costs to offset Casey/Cardinia’s advantages. Read the rest of this entry »