Unveiling the Secrets of Cambridge's Housing Market
The property market is one of the most important economic indicators, as it can significantly impact the prosperity of both the local and national economy.
Recently, new data from the Census 2021 has become available that sheds light on seldom discussed areas of property, such as the types of properties Cambridge has, together with how we live in and use our homes.
This data could be of interest to all Cambridge people. However, it should be fascinating to Cambridge homeowners and landlords, as it can help them make informed future decisions about buying, selling and renting property.
Furthermore, comparing the data to the national statistics can provide a broader perspective and a better understanding of how we live in our homes in Cambridge.
In this report, I will analyse seven measurements from the new Census data to assess the city's housing stock and provide valuable insights for potential buyers and sellers.
The seven metrics I have selected provide essential information about the city's demographics, housing types, and tenure.
1. Population and households of Cambridge
Knowing the population of a city is essential for a variety of reasons. First and foremost, it helps us understand the demographic makeup of Cambridge.
This information is crucial for local authority officials and businesses as they decide where to allocate resources and how to serve the community's needs (like whether we need to build more new homes, for example).
Looking at demographics allows for better long-term planning and development (and for savvy buy-to-let Cambridge investors to spot opportunities years in advance).
Additionally, population data can help identify trends and changes in the community over time (I will revisit this in future articles where I will discuss the growth of Cambridge over the last few decades and what that means for the property market and long-term house prices).
Finally, having accurate population figures is necessary for allocating government funding and resources, making it critical for our city's overall health and well-being.
The population of Cambridge currently stands at 152,700 in 55,300 households
2. The age profile of the people who live in Cambridge
The age profile of a city's population provides valuable insights into the local property market.
For example, suppose the city has a large population of retirees. In that case, it is more likely to have a higher demand for bungalows or sheltered accommodation. In comparison, a city with a large student population may have more demand for shared accommodation.
Knowing the age profile of the city's population is crucial for targeting the right buyers and understanding the potential market for different types of properties.
11.2% of Cambridge's population is 65 years and over, compared to the national average of 18.4%
I will delve into this in more detail in my articles on the Cambridge property market in the coming months.
3. Cambridge household composition (one-person households vs family households)
Understanding household composition is crucial for predicting the demand for different properties. For example, if the city has a large population of single people, there may be more demand for one-bedroom apartments or studios. However, if the city has many families, there may be more demand for three or four-bedroom houses and schools.
31.6% of Cambridge households are one-person households (compared to 30.2% nationally), and 55.4% of Cambridge households are single-family households (compared to 63.0% nationally).
The remainder is made up of shared accommodation (Homes of Multiple Occupation and supported living).
4. Cambridge accommodation types
Knowing the accommodation type is critical in understanding the local property market's demand and supply. For example, if the city has many apartments, it may indicate that the city has a higher demand for properties with lower maintenance costs or land is too expensive to build houses on.
Conversely, if the city has a higher than the national (or regional) average number of houses, it may indicate that it has more families looking for larger properties.
64.7% of the homes in Cambridge are houses (compared to the national average of 77.9%)
5. Number of bedrooms in Cambridge
The number of bedrooms is another crucial factor that affects the local property market. Knowing the average number of bedrooms in the city can help predict the demand for different property types. For example, if the city has many four or five-bedroom properties, it has more affluent buyers looking for larger properties.
18.2% of Cambridge homes are one-bed households (11.4% nationally)
28.3% of Cambridge homes are two-bed households (27.1% nationally)
31.1% of Cambridge homes are three-bed households (40.4% nationally)
22.3% of Cambridge homes are four-bed or more households (21.1% nationally)
6. Occupancy rating for Cambridge homes (whether a property is under-occupied or overcrowded)
Knowing the occupancy rating for homes is critical in understanding the local property market's demand and supply. For example, if the city has many under-occupied properties, it could indicate people living in homes too big for their daily needs and have the potential to rent out spare rooms or down size.
29.5% of Cambridge homes have two or more spare bedrooms (compared to the national average of 42.7%)
7. Tenure of Cambridge households
Understanding households' tenure is essential in understanding the local property market's demand and supply. For example, if the city has a high number of households in social housing, it may indicate that there is less demand for private rental properties.
Conversely, if the city has an increased number of households owning properties outright, it usually suggests that there are more older homeowners (compared to younger homeowners)
24.1% of Cambridge households own their home without a mortgage (compared to 32.8% nationally)
21.5% of Cambridge households own their home with a mortgage (compared to 29.7% nationally)
22.7% of Cambridge households live in social housing (compared to 17.1% nationally)
31.7% of Cambridge households live in private rented accommodation (compared to 20.4% nationally)
So, what is all this telling us?
The seven metrics discussed in this article on Cambridge provide valuable insights into the city's demographics and the future of Cambridge’s property market's demand and supply.
As a Cambridge resident and letting agent, having a deep understanding of these metrics can help me better forecast the demand for different types of properties and provide valuable insights and advice to Cambridge house sellers, buyers and landlords.
If you are considering moving home or investing in 2023 and want to know how this data will affect your buying or selling decisions, please do not hesitate to contact me for a personalised no-obligation no-cost consultation.
I am here to help you make informed decisions and find your ideal property in our thriving city of Cambridge.
Meet The Writer:
Alex Babouris is a HMO investor with more than 10 years of experience. He is the founder of Cambridge Property People – a community of local property professionals, investors and enthusiasts, and Alex is the founder and lettings director at Babouris – a specialist HMO property investment and management agency.