Sydney families swap backyard dreams for apartment living

The Great Australian Dream of owning a spacious home with a backyard is becoming increasingly elusive for many families, particularly in Sydney, where skyrocketing house prices are forcing a shift towards apartment living. The traditional image of the Australian home, complete with ample space and multiple bedrooms, is being replaced by the reality of smaller, more affordable units.

For families like the Malafaias, the dream of a free-standing home has been put on hold. Thalles and Camila, along with their young children, Kiara and Rhys, have settled into a two-bedroom apartment in Rosebery, Sydney. ‘It’s cheaper, it’s something we can afford,’ Thalles explains. With the median house prices in Sydney reaching astronomical levels, the couple, like many others, have had to adjust their expectations and rely on nearby parks and amenities to compensate for the lack of personal outdoor space. 

The financial strain of home ownership is evident when considering the average household salary in Sydney. According to an ANZ and CoreLogic Housing Affordability Report, with a third of the average household income of $101,000 going towards servicing a loan, only 10 per cent of all dwellings fall into the affordable category. This has led to a significant generational divide, with younger Australians like Cameron Elphick and his girlfriend, Anna, acknowledging that their path to home ownership will likely start with an apartment, a stark contrast to the experiences of previous generations.

Urban planning researcher Nicole Gurran points out that there’s a mismatch between the types of housing available and the needs of the population. As the young population booms and budgets remain tight, the demand for apartment living increases. Apartments, once considered temporary rental solutions, are now becoming long-term homes for growing families. This shift necessitates a change in the way apartments are designed and built, to cater to the needs of these families.

Over the past five years, Sydney has seen a surge in unit construction, with 80,000 out of 130,000 dwellings approved being apartments, according to the Australian Bureau of Statistics. Melbourne, Brisbane, Perth, and Adelaide have also experienced significant increases in their unit counts. This trend towards higher-density living requires careful urban planning to ensure that new developments are located near essential services and are supported by improved public transport.

While design standards for new builds have seen some improvement, there remains an urgent need for more family-friendly apartment blocks that offer three or more bedrooms and are within walking distance of shops, train stations, and safe outdoor play areas. Australia must look to successful international examples of high-density living to create environments that are not only affordable but also conducive to family life.

Have you felt the impact of rising house prices on your home ownership dreams? Do you live in an apartment with your family, and how has that affected your lifestyle? Join the conversation below and let us know how the future of home ownership is changing for you.

Also read: What if you could have done better with your $440K mortgage? An Aussie homeowner’s regret