Living Too Big for Who We’ve Become

Queensland’s housing market has an imbalance that is quietly reshaping demand. Across South East Queensland, 62 per cent of households are one or two people, yet 72 per cent of homes have three or four bedrooms.

It’s a clear mismatch between how people live and what we’re building. The new household reality is smaller, busier, and more urban. Yet the market still produces family-sized homes in a region where singles, couples, and downsizers dominate. That gap is creating the next wave of opportunity for investors.

Compact living options such as townhouses, small lot homes, well-located apartments, and co-living properties are in growing demand. They fit modern priorities like affordability, proximity, energy efficiency, and low maintenance. Young professionals want privacy without isolation. Downsizers want comfort without upkeep. Many households want smart design rather than more square metres.

Rents for these formats are rising faster because supply cannot keep up. When most residents live small but most dwellings are built large, markets bend. The right formats lease first, hold tenants longer, and see stronger price support through the cycle.

For investors the signal is clear. Focus on properties that match how people actually live today. Target smaller footprints in connected suburbs with strong services and transport. Aim for designs that emphasise functionality, storage, natural light, and acoustic comfort. Consider co-living where local planning and tenant profiles support it. You are not buying less home. You are buying more relevance.

The next phase of growth in South East Queensland will not just reward those who choose the right suburb. It will reward those who choose the right type of home.

Looking to invest where the real demand is?
Contact enquiries@propertyclub.com.au for stock options that align with this shift.

Source: Cotality RP Data, ABS, HTW Research