Detached Housing Demand Continues to Rise

Detached housing, or a detached dwelling, simply means that the building does not share any walls with other buildings. Unlike units, apartments and duplexes, detached housing usually takes up more space and houses fewer people.

In Australia, the construction of detached housing is on the rise and is expected to continue this boom well into 2024. In a standard year, 100,000 detached housing projects are commenced, however, in 2020/21 there was 139,220 commenced. This coming year is projected to see 133,100.

Multi-unit housing and its construction remain subdued, which is likely due to diminished migration into Australia.

The trend for limited capacity in each dwelling is also expected to shift, as first home buyers look back to units and apartments due to higher interest rates and affordability. However, the demand for detached housing will still affect trade prices.

Skilled trade prices have increased by 5.2% since the beginning of 2021 and the price of materials has increased 8% due to the demand boom. The availability of land, labour and materials will be under pressure throughout 2022, but once the dust settles, experts say the industry will start to even out.