Shrinking households and dwelling demand, what does it all mean?
Shrinking households and dwelling demand, what does it all mean?
How effective planning can help keep communities together
Demand for housing is at an all-time high, and recent comments made by the Reserve Bank of Australia highlight the need for more people sharing the same dwelling to help meet this demand.
While our lot sizes are decreasing, so are the number of people in our households, which actually means we need more homes for more people.
So why are our households getting smaller?
Queensland’s declining birth rate, increasing divorce rates (the state has the highest in the country), record levels of interstate migration, as well as an ageing and growing population are some of the major contributors to our smaller household sizes. Divorce typically results in the need for additional dwellings, and this is one of the factors that have pushed the demand for safe, affordable, and suitable housing options to an all-time high.
Why is efficient planning so important when it comes to accommodating our new household sizes? To put it simply, good planning will keep our communities together.
Household sizes are also getting smaller
After her recent separation, Cindy was priced out of the area where she once shared her marital home, where her children attend school and play sport, due to the lack of affordable housing options.
‘As a sole applicant, I was constantly rejected for rentals as landlords preferred dual income applicants,’ Cindy says.
‘I tried my best to apply for housing in the same area as my previous home, but I was really limited in the options as there weren’t many apartments or granny flats, and I simply couldn’t afford to rent a whole house on my own.’
And Cindy is not alone in finding herself in a smaller household. ABS data shows that in 2021, the average number of people who lived in each household in Queensland was 2.5, a decrease from 3.3 people in 1971.
What impact does smaller household sizes have on planning?
Aside from the health and social impacts of people being priced out of their community, smaller average household sizes change the way we need to think about providing homes for Queenslanders. Smaller household sizes drive the need for different types of dwellings at various price points across a community, as well as access to recreational infrastructure such as parks, shops, and public transport.
When it becomes harder for a household to find an attractive small or downsize option, it does harm to the whole community. A small household often ends up in a larger home than they need, in turn making large homes scarcer, driving the cost up for everyone.
This is where effective planning comes in.
An area, or zone , which prioritizes and allows the offering of both smaller, mid-size and larger dwellings can provide choice for households, their changing needs and dynamics and ultimately, allow people to stay in the areas where they have established community connections.
How Queensland can lead the way in addressing housing challenges
Queensland is currently facing many layered challenges: shrinking household sizes, dwelling demands, housing stock shortage, lack of diversity and infrastructure keeping up with population growth are all putting the pressure on.
But as challenges arise, so do the opportunities for solutions. So, what are they?
According to Dr Michael Fotheringham, Managing Director at Australian Housing and Urban Research Institute and member of Queensland’s Housing Supply Expert Panel, complex issues require a multi-pronged solution and for everyone to play their part.
‘It’s not a one size fits all world,’ Michael says.
‘Increasing density in the right locations with the right built form is part of the solution. But that’s just one aspect.
‘We’re seeing amazing interest in Queensland and the energy towards solving housing challenges in Queensland is second to none.
‘I believe it’s one of the advantages that Queensland has, is that when it comes to solving something, they get together and get going.’
As Queensland continues to grow and change, the Queensland Government is working with councils and industry to plan for and deliver housing where it is most needed and to create liveable communities for all to enjoy. Find out more: www.statedevelopment.qld.gov.au/housing
Last updated: 03 Jul 2023