Demographics shifts guide residential developments

The changing demographics in the Philippines are prompting residential developers and investors to rethink traditional assumptions about homebuyers.

A significant trend is the rise of older, financially independent, and often child-free individuals, which is quietly but profoundly reshaping the housing market. Developers must adapt their offerings to this evolving profile.

World Bank data show a long-term demographic shift. By 2030, the 35 to 39 age group is projected to see a notable increase, while the population of children aged 5 to 9 will continue its decline.

This trend is a continuation of patterns observed over several decades. From 1990 to 2023, the proportion of children aged 0 to 4 dropped from 15.8% to just 8.36% of the total population. In contrast, adults aged 40 to 44 increased from 4.03% to 6.19%.

A key factor contributing to this shift is the rising marrying age among Filipinos, now often between 35 and 44. Many of these couples either delay parenthood or choose not to have children. The result is a population that is aging, more urban, and increasingly prioritizing lifestyle, mobility, and investment over traditional family structures.

This demographic shift presents a significant opportunity for developers. A growing segment of working professionals and DINKs (dual-income, no kids) are entering their peak earning years. This group, with substantial disposable income often spent on investments or travel, is seeking homes that support flexible lifestyles, remote work, and urban convenience.

Developers can translate this into actionable strategies:

With manageable interest rates and declining unemployment, the current oversupply of one- and two-bedroom units in central business districts (CBDs) is expected to be absorbed over the next 24 to 36 months, primarily by single professionals and child-free couples.

Today's working professionals desire more than just compact studios. Developers should consider designing larger one-bedroom and two-bedroom units that can serve as dedicated workspaces or accommodate hybrid living arrangements. Comfort, layout flexibility, and robust connectivity will be key decision-making factors.

Growth outside Metro Manila is ripe for acceleration. For buyers who do plan to raise families, affordability and space are paramount. This creates a strong case for developing house-and-lot communities in growth corridors outside the National Capital Region (NCR), especially in areas with improving infrastructure and accessibility. Offering mid-sized homes with two to three bedrooms can meet these needs while stimulating economic growth beyond Metro Manila.

As the Filipino population continues to age and diversify, the residential real estate market must evolve to meet these new priorities.

Developers who proactively anticipate these shifts will be better positioned to lead in a dynamic market. Demographics not only reveal past trends but also illuminate the future direction of the market. The most resilient players in the industry will be those who recognize these signs early and respond strategically.