Analysis by Commonwealth Securities shows that 11 years ago Australia was building the biggest detached houses in the world.

But over the past seven years, homes have become progressively smaller on average and apartments have been embraced, with houses shrinking to their smallest in 17 years in 2018-19.

Data committed by CommSec from the ATO showed Australia is reversing this trend.

Numbers crunched as part of CommSec’s Home Size Report found Aussies are once again building the biggest homes, with the average new house built in Australia in 2019-20 at 235.8 square metres, up 2.9 per cent on the year previous.

Homes built in the United States, which are the fourth largest in the world were 233.1 square metres over the last year.

The size of the average new apartment lifted 6 per cent over the past year, hitting a decade high of 136.8 square metres.

CommSec chief economist Craig James said that before last year, Aussie home buyers had been building progressively smaller houses on average. 

“Aussies had embraced apartments as well as smaller houses on smaller lot sizes. In fact, the size of the average house built last year (2018-19) was the smallest in 17 years,” the economist said.

However, he pointed out the changing consumer preferences as Australians spend more time at home due to COVID-19.

“So, while Aussies built bigger homes over the past year, the big question is whether the decade-long downtrend in home size has ended. 

“Government-imposed lockdowns in response to the COVID-19 virus have prompted more Aussies to reassess 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,” Mr James said.

However, while Australia is again building the biggest houses in the world, US homes (houses and apartments) are slightly bigger than in Australia: 197.4 square metres versus 195.8 square metres in Australia.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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