New homes in Canberra's newest suburbs are among the largest in the country, with an average floor area of 241 square metres, according to data from the Housing Industry Association (HIA). This places the capital well above the national average of 230 square metres for new detached houses, defying a broader Australian trend towards smaller homes.
Canberra's Housing Market Stands Out
The HIA's latest report reveals that while the national average house size has been shrinking over the past decade, Canberra has consistently built larger homes. In the 2023-24 financial year, the average size of a new detached house in the ACT was 241 square metres, up from 236 square metres the previous year. This contrasts with states like New South Wales and Victoria, where new homes average 220 and 224 square metres respectively.
HIA Senior Economist Tom Devitt said the data reflects Canberra's unique market dynamics. “Canberra has a higher proportion of families and higher average incomes, which drives demand for larger homes,” he said. “The city also has more land available for greenfield developments, allowing for bigger blocks and houses.”
National Trend Towards Smaller Homes
Across Australia, the average size of new detached houses has fallen from a peak of 244 square metres in 2012 to 230 square metres in 2024. This decline is attributed to rising land costs, higher construction expenses, and changing preferences towards more affordable, compact homes. Apartment sizes have also shrunk, with the average new apartment now 130 square metres, down from 145 square metres a decade ago.
The trend is particularly pronounced in major cities like Sydney and Melbourne, where land is scarce and expensive. In contrast, Canberra's suburban expansion, particularly in areas like Gungahlin and Molonglo, has allowed builders to offer larger floor plans.
Implications for Homebuyers and the Environment
While larger homes offer more space, they also come with higher energy consumption and environmental costs. The average new Canberra home produces more greenhouse gas emissions due to heating and cooling needs. However, improved insulation and energy-efficient designs are helping to mitigate this impact.
According to the Australian Bureau of Statistics, the ACT has the highest average household energy consumption per square metre, partly due to larger homes and colder climate. “Bigger homes are not necessarily less efficient, but they do require more energy to maintain comfort,” said Dr. Sarah Anderson, an environmental scientist at the Australian National University.
Future Outlook for Canberra's Housing
Despite the current trend towards larger homes, there are signs of change. The ACT government's planning reforms, including the new Territory Plan, aim to increase housing density in established suburbs and encourage smaller, more sustainable homes. The government has set targets for 70% of new housing to be built within the existing urban footprint by 2030.
“We are seeing a shift towards townhouses and apartments in Canberra, especially among first-home buyers and downsizers,” said Devitt. “But for now, the detached house remains the dominant form of new housing, and they are staying big.”
