Apartment living becomes new Australian dream amid housing affordability crisis
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The traditional Australian dream of owning a house with a white picket fence is shifting towards apartment living as housing affordability issues persist across the country.
Recent Domain data reveals the average house price in Sydney has reached $1,627,625, while apartments are nearly half that at $806,137.
This stark price difference is driving potential homeowners to reconsider their housing goals and embrace the benefits of apartment living.
James Alexander-Hatziplis, CEO and Co-Founder of PLACE Studio, believes affordability issues have significantly altered the concept of the Aussie dream home.
“The goal posts for many Australians have gone from a big backyard to a place with amenities and that is close to work,” he said.
Alexander-Hatziplis added, “The white picket fence has been replaced with apartments located in areas that are close to public transport, with common amenities such as coffee shops, childcare – and apartments are the best way to do that.”
While space constraints have traditionally deterred growing families from apartment living, a new trend of apartment amalgamation is emerging to address this issue.
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Alexander-Hatziplis shared an example of a client who chose to amalgamate two apartments rather than move to a larger house.
“One of our clients simply outgrew their existing apartments but were lucky enough to have a neighbour looking to sell at an opportune time. After crunching the numbers, they realised they wouldn’t be able to afford a free-standing property in the area with similar bedrooms, so they purchased the adjacent apartment and amalgamated the two,” he explained.
This approach allows families to remain in desirable areas while gaining the additional space they need.
Alexander-Hatziplis noted that amalgamation can sometimes be more cost-effective than upsizing to a larger house, especially when considering the expenses associated with moving.
The trend towards apartment living and amalgamation reflects the changing priorities of Australian homeowners, who are increasingly valuing location and amenities over traditional housing styles.
As housing affordability continues to be a pressing issue, it appears that apartments may indeed become the new Australian dream for many aspiring homeowners.