Mismatch Between Household Size and Housing Stock

This report by Cotality analyzes the discrepancy between the size of Australian households and the types of homes being constructed. It highlights that over 60% of households consist of one or two individuals, yet the majority of housing stock is designed for families. The report presents data showing that only about 30% of households are families with dependents, while a significant portion of the population lives alone or in couples without children. The analysis reveals a clear mismatch, as most housing options available are larger than what smaller households require. The report also discusses trends in housing sizes, noting an increase in larger homes over time, and suggests that tax reforms could incentivize downsizing for older homeowners. It concludes by examining the potential for new housing developments to better accommodate smaller households, emphasizing the need for a shift in housing policy to address these mismatches effectively.