Are Australians living in homes that don’t fit their lives? New data says yes
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Did you know that most Aussies are rattling around in homes that are far bigger than they actually need?
According to a new study from Cotality, up to 60 per cent of Australians live either alone or with just one other person, yet the majority of our homes have three bedrooms or more.
It seems the classic ‘Great Australian Dream’ of a sprawling family home with a backyard and a Hills Hoist might be a little out of step with modern reality.
So, why are we clinging to all this extra space? One reason is the rise of working from home, with many people wanting a dedicated office space.
Others like to keep a spare bedroom ready for visitors. And as new developments continue to sprawl further from city centres, houses themselves have simply become larger over time.
But while having a bit of extra room can be lovely, there’s a downside. All these oversized homes are contributing to a mismatch in our housing market, making the current housing crisis even worse.
As Eliza Owen from Cotality points out: ‘When most Australians picture the “Great Australian Dream”, they see a family with kids in a three or four-bedroom house. But data shows that dream does not match reality. Couples without children and people living alone make up the majority of households, raising questions about how well our housing market is serving real demand.’
Here’s a surprising stat: one-bedroom and studio homes make up just six per cent of Australia’s housing stock. That’s a tiny slice of the pie, especially when you consider how many of us could happily downsize.
The good news? There’s a slow shift happening. The share of units and other dwellings (not just traditional houses) has crept up to 40 per cent, offering more options for singles and couples who don’t need all that extra space.
So, what’s holding us back from right-sizing our homes?
For many, it’s the cost and hassle of moving. Stamp duty can be a real sting in the tail, making it expensive to downsize.
That’s why some experts, including Owen, are calling for government action. She said: ‘Governments could make it more expensive to have more housing than you need, and cheaper to live in smaller housing. Many advocate for tax reform like abolishing stamp duty — which makes it cheaper to move housing — and replacing it with a broad-based land tax, which raises costs the more land you own.’
But there are also plenty of upsides to consider. Smaller homes are easier to maintain, cheaper to heat and cool, and often come with lower council rates and utility bills. Plus, selling a larger home can free up funds for travel, hobbies, or simply enjoying a more relaxed retirement.
If you’re thinking about whether your home is the right size for you, here are a few things to consider:
We’d love to hear from you! Are you living in a home that’s too big for your needs? Have you downsized recently, or are you thinking about it? What’s holding you back—or what made the move worthwhile? Share your thoughts and experiences in the comments below!
According to a new study from Cotality, up to 60 per cent of Australians live either alone or with just one other person, yet the majority of our homes have three bedrooms or more.
It seems the classic ‘Great Australian Dream’ of a sprawling family home with a backyard and a Hills Hoist might be a little out of step with modern reality.
So, why are we clinging to all this extra space? One reason is the rise of working from home, with many people wanting a dedicated office space.
Others like to keep a spare bedroom ready for visitors. And as new developments continue to sprawl further from city centres, houses themselves have simply become larger over time.
Most Aussies live alone or with just one other person, but most houses in Australia have three bedrooms or more, leading to mismatched housing sizes. Image source: todd kent / Unsplash. Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
But while having a bit of extra room can be lovely, there’s a downside. All these oversized homes are contributing to a mismatch in our housing market, making the current housing crisis even worse.
As Eliza Owen from Cotality points out: ‘When most Australians picture the “Great Australian Dream”, they see a family with kids in a three or four-bedroom house. But data shows that dream does not match reality. Couples without children and people living alone make up the majority of households, raising questions about how well our housing market is serving real demand.’
Here’s a surprising stat: one-bedroom and studio homes make up just six per cent of Australia’s housing stock. That’s a tiny slice of the pie, especially when you consider how many of us could happily downsize.
The good news? There’s a slow shift happening. The share of units and other dwellings (not just traditional houses) has crept up to 40 per cent, offering more options for singles and couples who don’t need all that extra space.
So, what’s holding us back from right-sizing our homes?
For many, it’s the cost and hassle of moving. Stamp duty can be a real sting in the tail, making it expensive to downsize.
That’s why some experts, including Owen, are calling for government action. She said: ‘Governments could make it more expensive to have more housing than you need, and cheaper to live in smaller housing. Many advocate for tax reform like abolishing stamp duty — which makes it cheaper to move housing — and replacing it with a broad-based land tax, which raises costs the more land you own.’
But there are also plenty of upsides to consider. Smaller homes are easier to maintain, cheaper to heat and cool, and often come with lower council rates and utility bills. Plus, selling a larger home can free up funds for travel, hobbies, or simply enjoying a more relaxed retirement.
If you’re thinking about whether your home is the right size for you, here are a few things to consider:
- How often do you use your spare rooms? If they’re gathering dust, it might be time to rethink your space.
- Are you struggling with maintenance or cleaning? A smaller home could make life a lot easier.
- Would you like to live closer to family, friends, or amenities? Downsizing could open up new lifestyle opportunities.
- Are you worried about the cost of moving? Keep an eye on government incentives or changes to stamp duty—they could make a big difference.
We’d love to hear from you! Are you living in a home that’s too big for your needs? Have you downsized recently, or are you thinking about it? What’s holding you back—or what made the move worthwhile? Share your thoughts and experiences in the comments below!
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