Builders are at the forefront of a shifting housing landscape, as rising unaffordability reshapes what Australians view as the ideal home. The demand for apartments and high-density living is growing, driven by financial pressures and changing lifestyle priorities. Here’s what builders need to know:

Key Trends and Insights

• Decline in home ownership: Millennials are the least likely to own a home, with just 54.6% owning outright or with a mortgage, compared to previous generations, according to the ABS.
• Rise of apartment living: Apartments now make up 16% of Australia’s 11 million private dwellings, with nearly one-third of new dwellings since 2016 being apartments.
• Shifting designs: Developers are moving away from “dog box” apartments, instead designing family-friendly layouts with larger floor plans. For instance:
  • Three-bedroom apartments now represent up to 50% of some developments.
  • Four-bedroom apartments are emerging, previously exclusive to penthouses.
     

Builders' Role in the Transition

• Community-focused amenities: High-end features like rooftop cinemas, outdoor gyms, and communal spaces are becoming standard. Shared facilities are cost-effective and appeal to buyers prioritising lifestyle and quality of life.
• Build-to-rent opportunities: This model combines traditional living with hotel-style services, providing shared amenities like swimming pools and event spaces, making housing more equitable.
   

Industry Insights from Place Studio

• Expert perspective: James Alexander-Hatziplis of Place Studio notes, "People want access to jobs and amenities much more than they want to be gardening on the weekend.”
• Growth in the sector: Place Studio is currently developing 7,000–10,000 apartments in NSW, targeting mixed-use residential and not-for-profit community housing.
   

Takeaways for Builders

• Adapt to demand: Focus on designing functional, community-centric apartments that cater to families and downsizing Baby Boomers.
• Leverage the build-to-rent model: This growing sector offers opportunities to provide high-quality living with shared amenities, aligning with evolving buyer priorities.
• Consider affordability: Builders should explore innovative designs and construction techniques to deliver quality housing that remains cost-effective.
   

As housing evolves, builders play a critical role in shaping communities that meet changing expectations. By prioritising design, quality, and shared living amenities, the construction industry can redefine the 'Great Australian Dream' for future generations.