House sizes hit 22-year low

While new-build dwellings in Australia rank the second largest in the world (behind the United States of America where homes are 8 per cent larger), data commissioned from the Australian Bureau of Statistics by CommSec shows that the average footprint of a new home is the smallest it has been since 1996.

According to the data, new Australian homes now have an average floor space of 186.3 square metres, down by 1.6 per cent over the past year.

CommSec chief economist Craig James suggested that the smaller home size reflects the increased building of apartments, which accounted for approximately half of all new construction over the past financial year.

Mr James commented: “Generation Y, Millennials, couples and small families want to live closer to work, cafes, restaurants, shopping and airports, and are giving up living space for better proximity to the desirable amenities.”

However, freestanding houses that were built in the past year maintained their large footprint, with the average house built in 2017–2018 being 230.8 square metres, according to the data.

The largest houses were built in Victoria last year, followed by the ACT, Western Australia and Queensland.

Meanwhile, the size of the average house built in NSW fell to a 23-year low in the past year, according to the report.

“The changes in housing demand and supply and the differences across the country have major implications for builders, developers, investors, building material companies, financiers and all levels of government,” Mr James said.

[Related: Home sizes smallest in 20 years]