Australia is again building the biggest houses in the world, ahead of the United States, according to the latest CommSec Home Size Report.
Three key takeaways:
- Australia’s average new house built in 2019/20 was 235.8 sqm, up 2.9% on the year and the biggest increase in 11 years
- The size of the average new apartment lifted 6%, hitting a decade high of 136.8 sqm.
- “The trends in home size have enormous implications for retailers and builders,” says CommSec chief economist Craig James.
The CommSec Home Size Trends report tracks home size over time and details the average sizes of new houses and apartments built over the last financial year.
The report, which used data commissioned by CommSec from the Australian Bureau of Statistics, reveals the average new home (both houses and apartments) was 195.8 sqm, up by three per cent over the year to a six-year high.
In comparison, US houses built over the 2019 calendar year fell for the fourth consecutive year, down three per cent to 233.1 sqm
At an average of 256.3 sqm, the ACT built the biggest houses in Australia in 2019/20, ahead of Victoria (250.3 sqm), New South Wales (235 sqm) and Western Australia (232.5 sqm). The smallest new houses built were in Tasmania (179 sqm).
When it comes to townhouses and apartments, Victorians boast the biggest, at 155 sqm, followed by WA (150.5 sqm), South Australia (149.8 sqm) and Northern Territory (145.3 sqm).
CommSec chief economist Craig James says Australians were building progressively smaller houses until last year, with the average house built in 2018/19 the smallest in 17 years.
“So, while Aussies built bigger homes over the past year, the big question is whether the decade-long downtrend in home size has ended. And COVID-19 may play a big role in answering that question,” James says.
“Government-imposed lockdowns in response to the COVID-19 virus have prompted more Aussies to re-assess their housing needs. With more time spent at home for both leisure and work, some Aussies are looking for bigger homes. Others are coming to the belief that the layout of their home needs changing.”
More Australians are embracing working from home or opting for larger homes in a regional or suburban area, James adds.
Demand for bigger or better homes has implications for home builders, trades, building materials, homeware stores, electrical stores and housing fitouts, including kitchen and bathroom fixtures and fittings.
James also says a “raft of government agencies and businesses, especially those that are reliant upon or housing-focussed, will need to be agile in monitoring the new housing trends”.