Aussies losing their desire for McMansions, says CommSec

Australia has lost its crown as the builder of the largest free-standing houses in the world.

Free-standing houses will continue to make way for apartment developments. Picture: AAP

Australia has lost its crown as the builder of the largest free-standing houses in the world, with the average size of detached residences at 17-year lows.

New data commissioned by CommSec reveals the US is now building the world’s biggest ­detached houses, or McMansions, about 5 per cent bigger than the average size of a new Australian free-standing dwelling.

The average American house or apartment is 201.8sq m, while Australian homes are 189sq m. The average New Zealand home is 164.4sq m, 13 per cent smaller than Australian homes.

“Seven years ago, Aussies were building the biggest detached houses in the world,” CommSec chief economist Craig James said. “But since then, Aussies have embraced apartments as well as smaller houses on smaller lots.’’

McMansions are still being built in Australia, but in lesser numbers.

Canberra has the largest free-standing houses in Australia, ­averaging 251sq m, but just 21 per cent of ACT dwellings in 2018-19 were houses.

Other states rejecting McMansions include Tasmania, which is building the smallest houses in 23 years, while Queensland houses are the smallest in 21 years.

The biggest apartments can be found in Tasmania at 159sq m followed by Western Australia at 156sq m, and Victoria at 147.5sq m. NSW units have shrunk to their smallest size in 20 years.

Mr James said more Australians wanted smaller dwellings like apartments, semi-detached homes and townhouses, which had contributed to a fall in average sizes over the past decade.

“Generation Y, millennials, down-sizers and small families want to live closer to work, cafes, restaurants, shopping and airports and have been giving up living space for better proximity to desirable amenities,” he said.

He said urban consolidation would continue and older free-standing houses would make way for apartment development.