The article below states that Australia's average house size is now the largest in the World.
I think that all it really reflects however is how expensive land is. If you are going to pay $600k for your land to build on in Sydney, would you pay an extra $150k to build a 130 sqm home on it, or an extra $250k to build a 260 sqm home on it.
If you can get double the house size by spending $850k rather than $750k, that is what you will choose. If land price comes down, I bet we will see more smaller houses.
Home truths: Australia trumps US when it comes to McMansions
PETER MARTIN ECONOMICS CORRESPONDENT
November 30, 2009
The average size of new homes around the world in square metres.
AUSTRALIANS are piling on sitting rooms, family rooms, studies and extra bedrooms at the fastest rate in the world, with the size of our homes overtaking those in the US as the world's biggest.
The typical size of a new Australian home hit 215 square metres in the past financial year, up 10 per cent in a decade, according to Bureau of Statistics data compiled for Commonwealth Securities.
US figures show the size of new American homes shrinking from 212 square metres before the financial crisis to 202 square metres in September.
New homes in other parts of the world are far smaller, with Denmark the biggest in Europe at 137 square metres and Britain the smallest at 76 square metres.
The figures lend weight to a claim by the deputy governor of the Reserve Bank, Ric Battellino, this month that Australian house prices are high in part because Australian houses are better.
The Reserve is due to meet tomorrow to decide whether to increase interest rates. Almost half of the $250 billion spent on housing each year was on alterations and additions, with one in every seven new houses ''simply replacing existing houses that have been demolished''.
Mr Battellino said Australians had so many holiday houses that the latest census found 8 per cent more dwellings than households.
Sydney houses are by far the nation's biggest with new free-standing houses typically spanning 263 square metres – providing more than 100 square metres of indoor space per person.
But the high proportion of townhouses and apartments in Sydney pushes the average dwelling size down to 205 square metres, just below the Australian average and about the same as in the US.
''Another way of looking at it is the number of bedrooms,'' said a Commonwealth Securities economist, Craig James. ''Around 20 years ago only one in every six homes had four or more bedrooms. By 2006 it was one in every 3.5 homes.
''While the fast pace of population growth points to the need for more and more homes, we are living in the biggest homes in the world. The simple fact is they could be better utilised.''
Mr James is encouraged by a slight increase in the number of Australians living in each home. The average household size has crept up from 2.52 to 2.56 people in 2007-08.
''It may not seem remarkable but it appears to be the first increase in at least a century, and perhaps the first since European settlement.
''It makes sense. Population is rising, as is the cost of housing and the cost of moving house, so we are making greater use of what we've got. Children are staying at home longer and more people are opting for shared accommodation. The key question is whether it's permanent or temporary. If sustained, it will save us building 166,000 homes.''
What an absolute furphy! We all want to keep up with the Jones's, so we all want to go one bigger. Housing size in Oz is not driven by need but by ego. Why else would we be seeing units which are bigger than the old 10 square house? Buyers might not be able to afford a freestanding house with 4 beds/study/etc located in the cbd but they can buy a low care unit with all the same amenity.
Our average housing size will come back once there is more pressure on to develop units and the price of single housing is out of reach for all but the richest in the market.
I was thinking it was the fact that the sun is so aggressive in Australia that it is safer for kids to play inside in a bigger house than outside and risk sun burn or skin cancer.
I think also size is somewhat driven by if you have children. You don't need a yard, 2 car garage, 2 living areas and a huge kitchen unless you have kids, dog, cat, 2 cars, inlaws who come to stay so you need a fourth bedroom……..Uhhh yeah….
No kids means nice small townhouses! Household size is decreasing so so will house size.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeContrary to your view D, family sizes are growing for the first time in living memory – this will carry on for a few more years whilst there is a baby bonus being offered.
I think this is the problem with my micro research into one area. In the area I'm looking the population is aging quite rapidly causing an increase in single and 2 person households. The council are desperately trying to accommodate these smaller households and introduce more TH's and apartments. They want older and single persons to vacate the 3 bed houses so they are then available. I guess they are trying to stop a general shortage in the area. One of the other areas I've been looking is all students who share and young professionals so I guess my viewpoint is a little skewed rather than what is happening over the whole country.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeIf the RBA has its way we'll all be living in 3 man tents.
Bring it on Stevo – love the pain!!!
I wouldn't know what do do with 215 square metres.
Darren…
How about a gym, home cinema, sauna, swimming pool … more space = more fun!
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