Overview

• Property researcher Cotality reports that 61% of households are one or two people, yet one-bedroom and studio dwellings are about 6% of stock and three-bedroom homes dominate.
• About 40% of lone-person households are aged 65 or over, highlighting scope to free up family houses if downsizing options are available nearby.
• Suggested demand-side changes include abolishing stamp duty, introducing a broad-based land tax, and revising pension asset tests to make moving into smaller homes easier.
• The federal goal to build 1.2 million homes in five years remains policy, but officials acknowledge it is off track despite the ambition being maintained.
• Cotality cautions that faster approvals will not quickly lift completions given elevated construction costs and longer build times, and RBA analysis notes that even a modest rise in average household size would materially reduce dwelling needs.