A three-month study by Propertyology has revealed that apartments are not a viable solution for housing affordability or increasing homeownership rates, with data showing most new dwellings actually reduce community lifestyle quality.
The research examined homeownership rates, purchase prices, household movement patterns, dwelling types, demographics, and rental concentration across jurisdictions nationwide, revealing stark contrasts between apartment-dominated and house-dominated areas.
Propertyology’s Head of Research, Simon Pressley, said Australians overwhelmingly prefer houses to apartments regardless of price differences.
“Very few people are prepared to pay $750,000 for a 100m2 2-bedroom apartment that they can’t fit a good-size couch in, and the dining room isn’t big enough to have friends over for dinner,” Mr Pressley said.
The data confirms that most Australians will pay premium prices for detached houses that offer space, natural light, outdoor areas, and neighbourhood amenities over apartments, even at higher costs.
According to the research, municipalities where 70 per cent or more of residential dwellings are detached houses consistently show homeownership rates between 70 and 90 per cent, demonstrating clear consumer preferences.
Despite this evidence, property sector stakeholders continue focusing on zoning changes and high-density developments that compromise established residential areas.
Mr Pressley pointed to Melbourne’s CBD as a prime example of the disconnect between housing policy and homeownership outcomes.
“98 per cent of all residential dwellings in the CBD municipality of Melbourne City are apartments,” he said.
“Despite great proximity to jobs, cafes and public transport, Melbourne City’s homeownership rate is an abysmal 20 per cent.
“Even the incredibly cheap median apartment price of $450,000 can’t entice households to become half-pregnant.”
The research indicates that priorities for families and older Australians consistently centre around detached housing and green space, with these factors strongly correlating with higher homeownership rates across Australia.
Mr Pressley criticised current approaches to population growth and migration, suggesting that the concentration of overseas migrants in limited areas is creating unsustainable pressure on housing.
He argued that Australia’s housing strategy has failed by focusing on quantity rather than quality, with approximately half of the new dwellings built over the last 15 years being apartments that don’t meet the actual preferences of potential homeowners.
The research suggests that any effective national housing strategy should prioritise developing new communities with freestanding houses on blocks no smaller than 600m2, with detached houses making up at least 80 per cent of annual production.
Mr Pressley also recommended that some city councils consider halting higher-density development to protect established communities.
“Responsibly preventing existing well-established communities of detached houses from being downgraded by higher-density development will mean that the right decision for some city councils will be to put up the ‘Full House’ sign,” he said.
