The talk about the housing crisis in Australia is a daily occurrence. Rightly so because prices are up and supply is down, and the dream of homeownership is drifting further out of reach for a whole generation. Not to mention the growing rate of homelessness in this country.
But there’s a conversation we’re not having. We need to be talking about how much space we think we’re entitled to and how this has a trickled down effect on making more homes available.
The average Australian home is 236 square metres. That’s the biggest in the world. That’s 10% larger than the average US home, and 35% larger than homes in the UK. Yet in Australia, most live in households of one or two people. That’s 60% of homes occupied by one or two people, rattling around inside four bedrooms, three bathrooms, two living rooms, and probably a separate media room for good measure.
Is it any wonder we’ve got a land supply issue?
There’s this deep-rooted belief in Australia that bigger equals better. It goes back to the post-war boom, when land was cheap and a big home on a big block was the reward for hard work. Add in the Hills Hoist, BBQ, a swing set and the space to grow into … maybe an extension on the verandah, Australians got used to sprawl.
But the world has changed. Land is scarce, infrastructure is under pressure and energy costs are through the roof. Yet, we’re still designing homes as if we’re stuck in the 1950s. The oversized housing cost us in many ways. Bigger homes cost more to build, more to heat and cool, and more to maintain.
CoreLogic says the average construction cost for a detached home is now $473,000, before you even buy land. In places like Sydney and Melbourne, land alone can cost upwards of $500,000. That puts traditional homeownership completely out of reach for many first-time buyers.
Then there’s the environmental cost. The CSIRO reports residential buildings account for 57% of the built environment’s carbon emissions. Every extra room and extra square metre, adds to the energy we use and the materials we extract. Oversized homes strain bank accounts and the planet.
We’re running out of space. In Victoria, the median lot size has shrunk by 13% over the past decade, but paradoxically, the average house size has kept growing. That means fewer homes per hectare, and fewer people getting a foot in the door.
We’re pretending this is sustainable.
I build homes for a living, designing housing for people with disabilities. These are the people often priced out or placed in housing that doesn’t meet their needs. We build smaller homes, smarter homes, and co-design with the people who will live there.
What we’ve found is when you build intentionally, not excessively, you save space and create homes that work better so people live more comfortably, affordably, and with more connections.
There are alternatives to the McMansion. Yes, they may be smaller, and we may have to stem our buying of ‘things’ but taking a different approach to what housing looks like in the future could mean more homes for more people.
Homes need to be smaller, and smarter. A modest footprint doesn’t mean cramped. Thoughtful design, natural light, and functional layouts can make small spaces feel generous and cost far less to own and run.
Co-living models, done right, with private rooms, shared kitchens, laundry, and common areas are already working in aged care, disability housing, and parts of Europe and some parts of Australia. They offer affordability and combat the loneliness epidemic, which now affects 1 in 3 Australians, according to Relationships Australia.
Medium-density developments like town houses bring people closer to jobs, school and services without the sprawl.
Space should no longer be a status symbol and if we start thinking of it as a shared resource, it means more for everyone else.
There’s a cultural shift that needs to happen in how we build and define success. Our homes don’t need to be huge; they need to be healthy, efficient and purposeful. Places where we can live well without sending the next generation into debt trying to afford it. We also need to rethink how we talk about value. What value do we place on our quality of life? Things like comfort, connection, efficiency, proximity, and community should have value but if we keep chasing oversized houses at the expense of those things, we’ll keep paying for it, economically, socially, and environmentally.
The housing crisis isn’t going to be solved by building bigger but by building better. It’s time to let go of outdated dreams and design for the future.