How pets are transforming the property market - John McGrath

As someone who has always loved dogs, I’ve been watching with keen interest how our furry friends have impacted our housing decisions recently, as they were definitely a catalyst for my own property decisions.  It’s pretty clear that I’m not the only one whose favourite part of the day is being greeted by a four-legged friend when I get home. And like so many other people, I’m happy to put my dogs first when it comes to what I want in a house.

All of this is why I wasn’t surprised to read 73% of Australian households now own a pet. The national Animal Medicines Australia (AMA) survey that featured this data was released in September last year. The report also highlighted that 86% of owners said their pets have positively impacted their lives, particularly during the continuing cost-of-living crisis.

I couldn’t agree more. Home buyers are increasingly zeroing in on properties with pet friendly features: think secure fencing, grassed areas, durable flooring, relaxed strata rules, dog wash stations, and proximity to parks and off-leash areas where four-legged companions can run free.

We discuss this and the property market changes occurring as a result, in our McGrath Report 2026.

Firstly, don’t expect to see our love of pets decline. The AMA report found that COVID lockdowns and similar helped to drive our pet household figures from 61% in 2019 to 69% in 2022. As a result, 7.7 million households now have a pet.

Another survey took a closer look at how pets are impacting home buyers’ plans. A national survey released by property developer, Capital Corporation in July last year found 59% of potential downsizers were keen to purchase a pet when they moved. One in three of these people wanted their next property to have pet-friendly inclusions such as landscaped grounds and private gardens.

Meanwhile, recent tenancy laws in several states, including Victoria, NSW and Queensland, have restricted property investors’ ability to refuse tenants’ pets. This has resulted in some landlords leaving the market, and a decline in rental properties. In July 2025, a national Budget Pet Products survey found only 15.91% of advertised rentals were pet friendly, and these cost an extra 7.51% more than non-pet-friendly rentals.

This is largely why there’s been an escalation in “pet bidding”.

It’s clear there’s a lot of tenants who can’t find a home, because they own a pet. But if you’re prepared to welcome pets, you could find a tenant much faster. This tenant may also be keen to stay longer than usual, due to the lack of pet-friendly rental properties.

You can enjoy pet peace of mind by organising regular inspections of the property. If the pet has damaged your home, some states’ rental laws allow pet bonds, which will help cover this problem.

Depending on where you live, you may be available to include tenancy lease clauses about the acceptable size, breed, and number of pets. Strata bylaws may already have such clauses in place, for example, asking tenants for pet references from their former landlords and consider meeting the pet before agreeing to the lease.

And there’s anecdotal evidence to suggest that being pet friendly can increase property value by 10%. As for landlords, there’s plenty of research that shows tenants will pay extra for a place where their pets are welcome – in some cities to the tune of a 30% premium.

I believe pets are worth their weight in gold. So, I’m looking forward to seeing what I think will be an even bigger impact on the market, both this year and beyond.