Australians are now more attracted to apartments, which has dropped the size of an average home to its lowest level in 22 years.
The lower average floor size of a new Australian home suggests a shift in demographics, demand, and demographic trends across the country.
Data commissioned by the Commonwealth Securities (CommSec) at the Australian Bureau of Statistics of Australia showed that the average new homes built during the past fiscal year was 186.3 square meters, down 1.6% in one year and the lowest since 1996.
The chief economist of CommSec, Craig James, said that this new trend of smaller homes indicates that buyers now prefer apartments. The records indicated an increase in the number of apartments, nearly half of all new construction projects being apartment buildings.
Between 2004 and 2010, the average size of the apartments was 140 square meters. Now it is closer to 125 square meters. Apartments also account for 46% of all houses built. The figure is significantly higher than it was eight years ago, while they accounted for only 27% of all new homes.
"Generation Y, Generation Y, couples and small families want to live closer to work, cafes, restaurants, shops and airports, and give up living spaces to get closer to desirable amenities" said James.
CommSec also noted that the number of people residing in a household is decreasing. This market evolution is reflected in the reduction of the average size of houses.
According to census data, there was an average of 4.5 people in each house in 1911, but by 2016 that number had fallen to about 2.4 people.
Although there are still buyers who are attracted to larger single detached homes, the average sizes are obviously smaller. For reference, the size of an average house built in 2017-2018 now only represents 230.8 square meters.
Victoria is home to the largest Australian houses. The state was followed by the Australian Capital Territory (ACT), Western Australia and Queensland in this category. In New South Wales, the size of an average home has fallen to its lowest level in 23 years in 2017.
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