Demand for multifamily dwellings grows amid record housing prices
Demand for multifamily dwellings is projected to increase amid Australia’s record housing costs, bringing an estimated $57.2 billion to the housing and construction industry by the end of FY2027–28.
Recent data from Savills Research has indicated that more Australians are turning to sharing mortgages and multifamily homes as a pathway to securing property ownership.
Multifamily dwellings can represent two homes adjoining one another, whether apartments, a subdivided block or a granny flat in a large residential home block.
Despite being a smaller asset class within the Australian housing market, multifamily dwellings raised over $15.85 billion in institutional capital in 2022, with an additional 52,800 new homes expected to be completed over the next five years, the data indicated.
Census analysis by the City Futures Research Centre at UNSW found that 20 per cent of all Australians lived in a multigenerational household in 2020, while the Australian Bureau of Statistics projects an increase in multigenerational houses of 63 per cent by 2046.
Proponents of the multifamily dwellings have said that sharing a home with family members does not only appeal financially, but can also help raise kids and provide a chance for the elderly to see their family daily and not experience loneliness.
Though despite the advantages, experts have warned that living together daily can put a strain on familial relationships; the key to multigenerational living is in the house design.
Place Studio CEO, co-founder and architect, James Alexander-Hatziplis, said that those considering multifamily housing should maximise the functionality of spaces through adaptable and flexible design.
“These could be rooms that could be divided using sliding walls or partitions into smaller spaces to accommodate studies, offices, recreational areas, separate lounge and entertaining places, and/or smaller bedrooms for growing families.”
“[Open-floor plans] also allow for greater versatility in spaces that can easily transition to another purpose, such as family gatherings or grandparents babysitting grandchildren.
“A reduction of walls due to the open plan also ensures greater natural light penetration and ventilation,” he said.
Alexander-Hatziplis also recommended thinking about the various stages of life and lifestyle changes during the design planning to ensure the dwelling will be adequately evolving along with its occupants.
“Consider including elements such as wider doorways to accommodate pram and/or wheelchair usage. This ensures homes can remain functional for a wide range of residents.”
While planning multifamily dwellings, construction should prioritise privacy above all to ensure all residents are comfortable within their own homes or parts of the home.
“Walls, floors and ceilings should have appropriate insulation to ensure effective soundproofing and reduction of noise transfer between residences.
“Private outdoor spaces as well as window positioning should be carefully considered.”
He added that a lack of privacy can frustrate even the closest families, such as simply being able to watch different television channels.
“Similarly, consider how often you want families to get together, and whether that means the need for a large family dining area,” Alexander-Hatziplis concluded.