Ruqayyah Snyder
The average size of houses in Australia has been a topic of discussion among homeowners, with a focus on the financial and environmental benefits of smaller homes. While the average site area of new homes has decreased by 13% over the last decade, there is still a preference for relatively large houses compared to other countries. The average new house size in Australia is about 230 square meters, with variations across states and territories. The Australian Capital Territory (ACT) has the largest new homes, while Tasmania has the smallest. Factors such as local council restrictions, boundary requirements, and lot size impact the size of homes. With a trend towards smaller lots, increasing land costs, and the need for sustainable living, Australians are considering building and living in smaller homes.
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What You'll Learn
Average home size in each state/territory
The average size of homes in Australia varies based on the state or territory. According to one source, Victoria has the largest average house size in Australia at 244.8 square metres. The Australian Capital Territory (ACT) is second at 242 square metres, followed by Western Australia at 235.3 square metres, Queensland at 230.8 square metres, and New South Wales at 230 square metres. Tasmania and the Northern Territory have the smallest houses.
Another source, however, places the ACT first, stating that it has the biggest new homes, over 18 square metres larger on average than Victoria, which is in second place.
The average size of homes in each state or territory also depends on the type of dwelling. For example, in terms of "other dwellings" such as townhouses and apartments, Victoria is again the state with the biggest dwellings at 155 square metres, followed by Western Australia at 150.5 square metres. The smallest 'other dwellings' are found in New South Wales at 121.3 square metres and Tasmania at 132.5 square metres.
There are several factors influencing the size of homes in Australia, including the changing lifestyles of residents. It is becoming increasingly common for younger people to want to live closer to their workplaces, cafes, restaurants, shopping centres, and airports. This demand for higher-density living has seen approximately half of all newly built developments in Australia be apartments. People are also having fewer children at later ages, resulting in smaller households and less need for larger houses.
The rising cost of living and energy affordability crisis are also causing Australians to opt for smaller homes. Living in a smaller home means significant savings on lighting, heating, and cooling bills as there is less living space to illuminate or keep warm or cool.
The average free-standing house size in Australia is 228.8 square metres, which is the smallest average house size built per year in the last 17 years. The combined home size (house and apartment) being built in Australia is 189.8 square metres, the smallest in two decades.
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House size trends over time
House sizes in Australia have been shrinking over the years, with new houses getting smaller in all but three of Australia's states and territories. The average new house in Australia is about 230 square metres, a decrease from 245 square metres in 2012. The average site area of new homes has also reduced by 13% over the last decade, from 496 square metres in 2012 to 432 square metres in 2021.
However, this trend varies across states and territories. For instance, new houses in Western Australia have decreased in size by almost 20 square metres since 2007-08, while those in South Australia have grown by over 20 square metres in the same period. The Northern Territory has the largest new townhouses, with an average size of 193.4 square metres, a 33% increase since 2007-08. In contrast, Tasmania has the smallest new dwellings, with its new houses shrinking by nearly nine square metres on average.
The Australian Capital Territory (ACT) has the biggest new homes, with an average floor area of 258.9 square metres in 2021-22, a significant increase from 2002-03. New South Wales, which had the largest floor area for new houses in 2002-03, has seen a decrease of 5.7 square metres to 239.4 square metres in 2021-22. Victoria and Western Australia have floor sizes over 150 square metres, with Victoria's new houses remaining relatively unchanged over the long term.
The trend towards smaller house sizes can be attributed to factors such as the increasing cost of land, the high proportion of new housing in urban infill areas, and the construction of double-storey houses to maximise floor space on smaller blocks. Additionally, with rising interest rates, the increasing cost of living, and concerns about energy affordability, Australians are considering building and living in smaller, more sustainable homes.
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Why houses are getting smaller
The average new home in Australia is about 230 square metres (m2), though this varies by state. New houses have shrunk in all but three of Australia's states and territories. The average size of Australian dwellings has been on a steady, though modest, decline over the past 15 years.
There are several reasons why houses in Australia are getting smaller. Firstly, there is a reduction in lot sizes across the country. The median capital city lot size was 391m² in late 2023, an 11.1% drop since 2013 and a 33.8% drop since 2003. This trend toward smaller blocks is one factor influencing the overall size of Australian homes.
Secondly, changing consumer priorities and economic challenges are leading to a preference for smaller living spaces. Rising property prices and a shift towards urban living have made apartments a more attractive option for many, especially first-time buyers. This is particularly true in cities like Sydney and Melbourne, where there is a growing knowledge-worker population and a different lifestyle model.
Additionally, there is a growing emphasis on efficient land use and energy efficiency. Smaller homes are more energy-efficient and have a lower impact on the environment. However, it is important to note that while the average home size may be decreasing, the energy requirements for heating and cooling new homes are still significant due to their lower star ratings.
Lastly, demographic changes are also a factor. Couples and young families are now more open to apartment living, whereas a house on a larger block was once the dream. This shift in preferences allows for the subdivision of larger blocks into townhouses or low-rise apartments, contributing to the overall decrease in the average size of Australian homes.
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The benefits of smaller homes
The average new home in Australia is about 230 square meters, but this varies by state and territory. New houses have shrunk in size over the long term in most parts of the country.
Financial benefits
Smaller homes are less expensive to purchase and maintain. This includes lower costs for insurance, taxes, heating, cooling, electricity, and other utilities. Big-ticket maintenance items like replacing a roof or repainting the exterior will also cost less.
Time-saving
Smaller homes require less time and effort to clean and maintain, freeing up your schedule to pursue other interests and activities.
Encourages social interaction
Living in a smaller space can foster more social interaction and connection among family members.
Encourages minimalism
Limited space acts as a natural deterrent to buying unnecessary items, promoting a minimalist lifestyle that can reduce clutter and provide mental freedom.
Location advantages
Choosing a smaller home in a desirable location can offer benefits such as a shorter commute, better neighborhood, or proximity to people and amenities that are important to you.
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The impact of working from home
The average new home in Australia is about 230 square metres, or 2,475 square feet. However, there are variations across the country's states and territories. For example, the Australian Capital Territory (ACT) has the largest new homes, which are, on average, 18 square metres larger than those in Victoria, the state with the second-largest new houses. In contrast, Tasmania has the smallest new dwellings, and new houses in Western Australia have decreased in size by nearly 20 square metres since 2007-08. Interestingly, while new houses have generally shrunk over time, new townhouses have increased in size in most states and territories.
The COVID-19 pandemic significantly influenced work patterns in Australia, with many people adopting working from home arrangements. Research from the Melbourne Institute indicates that the majority of Australian workers favour a hybrid work model, combining remote and office work. Prime Minister Anthony Albanese supported this view, acknowledging the benefits of remote working, especially for working mothers. However, he cautioned against a "one size fits all" approach, emphasising the importance of occasional in-person gatherings for social interaction.
The shift towards working from home has had a notable impact on Australian society and the economy. On the one hand, it has led to increased flexibility for employees, allowing them to better balance their work and personal lives. This flexibility can be especially advantageous for caregivers and those with family commitments. Additionally, working from home can reduce travel time and commuting costs, providing both time and financial benefits to employees.
However, there are also potential drawbacks. From an economic perspective, Opposition Leader Peter Dutton expressed concerns about decreased productivity and its potential impact on the economy. Additionally, the blurred lines between work and home life may lead to challenges in disconnecting from work, potentially affecting employees' wellbeing and work-life balance.
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Frequently asked questions
The average floor size of a newly built house in Australia was 242 square metres in 2021, down from 245 square metres in 2012.
The Australian Capital Territory has the largest new homes, with an average floor area of 258.9 square metres.
Tasmania has the smallest houses, with an average floor area of 182.4 square metres in 2021-22.
New houses have shrunk in all but three of Australia's states and territories.
