After years of preferring smaller homes, Australians are once again building the tallest homes in the world, beating their American counterparts.
In the last fiscal year, the average size of a newly built house in the country is 235.8 m², up almost 3% year-over-year and the biggest increase in 11 years, according to the latest home size report commissioned by Commonwealth Securities Limited (CommSec) and undertaken by the Australian Bureau of Statistics (ABS).
The average size of newly built apartments also increased, reaching a decade high of 136.8 m², a 6% jump from the previous year.
Overall, the average size of new homes built in fiscal year 2019-2020 is 195.8 m², a 3% increase year-on-year, marking a record in six years .
"Prior to last year, Australian homebuyers were on average building ever smaller homes," said Craig James, chief economist at CommSec, the online brokerage arm of the Commonwealth Bank. of Australia. “So, while Australians have built bigger homes over the past year, the big question is whether the decade-long downward trend in home sizes has ended.
ACT houses, Victorian units are the largest
The largest newly built houses in Australia are in the Australian Capital Territory, with an average floor space of 256.3 m². Next are the Victorian houses with an average size of 250.3m², followed by those in New South Wales with 235m² and Western Australia with 232.5m².
The smallest houses built in the last fiscal year are in Tasmania, where the average floor space is 179 m².
As for “other accommodation,” which includes townhouses, apartments and apartments, the largest is in Victoria, where the average floor space is 155 m². Housing in Western Australia is the second largest at 150.5 m², followed by 149.8 m² in South Australia and 145.3 m² in Northern Territory.
The units in New South Wales average 121.3 m² in size, the smallest in the country.
Overall, Western Australia has the largest newly built homes in the past fiscal year, with floor areas averaging 218.5m². Next come the Victoria houses with an average floor space of 217 m².
Is the COVID-19 pandemic making homes bigger?
James says he has seen many Australians 'adopt' smaller homes in recent years, with the average size of new homes hitting a 17-year low in fiscal 2018- 2019. Apartments are also getting smaller, with the average floor area falling to its lowest level in 22 years in 2017-18 before increasing slightly the following year.
He attributes the downward trend to a range of factors – including an increased emphasis on sustainability, a desire for low-maintenance homes, reduced lot sizes, fewer people per home , affordability issues and the desire to live near city centers.
However, the COVID-19 pandemic has prompted many families to reassess their housing needs, he says.
“There have been changing trends in the sizes and styles of homes over the past decade and COVID-19 is throwing another element into the mix,” James says. "More Australians could embrace working from home more broadly, choosing to move away from apartments in or near the CBD, preferably for a larger house in a regional lifestyle area or suburban. "
He adds that the pandemic has shifted families' preferences from smaller homes to those with larger spaces, prompting some to expand their existing residences by adding additional bedrooms.
"With more time spent at home for leisure and work, some Australians are looking for larger homes," says James. "Others come to believe that their home's layout needs to change."
"While on average there are still only about 2.5 people in an average home, home builders routinely include four bedrooms on architects' plans, with one bathroom. master bath, bathrobe, pantry, home theater room, office area, mud room and outdoor dining, ”he says.
What are the implications for investors?
James says the change in preference to larger homes has "huge implications" for retailers and home builders.
"It is clear that a multitude of government agencies and businesses, especially those that depend on or focus on housing, will need to be nimble to monitor new housing trends. He said.
James says one of the most important effects of the pandemic that investors should pay attention to is the sudden shift to remote working.
"If more Australians decide to work from home, this has implications for the central business districts (CBD) of capital cities, including the use of offices and retail space. retail, cafes and restaurants, services such as hairdressers and public transport, ”he says. 'If more Australians go for radical change, tree change or green change, it has implications for house prices, housing supply and demand for housing. social and economic infrastructure (roads, schools, hospitals) in the outlying suburbs and regional areas. "
