The Family Unit

As the size of an average house block shrinks and the price skyrockets, units are becoming a viable alternative for families.

Once upon a time, units were a stepping stone for singles and families on their way to home ownership.

These days, an increasing number of families are happy to stay put in apartments for the long term, with developers noting the shift in demand as families prioritise convenience and cost over space.

In recent years, plans for several capital city apartment complexes have been redrawn at the 11th hour, with developers ditching one-bedroom units to incorporate more three and even four-bedroom homes. One inner-Brisbane project slashed total unit numbers from 157, which had been approved by the council, down to 129 to incorporate more multiple-bedroom apartments.

Price growth reflects this shift in demand, with apartments eclipsing houses in key markets over the past year. In Brisbane, unit prices climbed 12.9 per cent (to a median of $708,000), compared to houses, which were up 6.9 per cent (to reach a median price of $1,051,000), in the year to June 2025, according to PropTrack’s Home Price Index. It was a similar story in Perth where unit prices were up 12 per cent compared to 7.1 per cent for houses. In Adelaide and Sydney growth for units and houses was roughly similar, at just under 10 per cent, and just over 3 per cent respectively.

Government regulators are getting onboard, too, with unit construction seen as the answer to Australia’s housing crisis. In May, the Victorian Government launched the Great Design Fast Track, which, as the name suggests, delivers fast approval to developments that tick priority boxes, including those that are family-friendly. The Government is also offering stamp-duty concessions to off-the-plan buyers to support unit development (see our stamp duty story in this issue).

For home buyers, the surging interest in apartment living is the combined result of several factors, including spiralling house prices, shrinking block sizes, growing commutes and some higher quality apartment developments. As big backyards become a thing of the past, many families are weighing up the benefits and costs of moving into conveniently located complexes with communal space and perhaps even a pool or gym.

Among the upsides are:

• More free time, with savings on commuting, home maintenance and upkeep of gardens/pool.

• Access to communal areas such as pool decks, gyms and saunas. However, this also brings up a potential con: high body corporate fees.

• Generally better security than free-standing homes.

• Usually located with easy access to parks, transport, schools, restaurants and entertainment hubs.

On the downside:

• Research has identified low stock of the 3-4 bedroom units most sought by families.

• Storage can be an issue, with some kitchen and bedroom designs not allocating sufficient cupboard space.

• Reduced privacy.

• Lack of communal play spaces and poor soundproofing can cause issues.

• Keep an eye out for any maintenance red flags, as this may require a large contribution to the complex’s building fund.

• Although units have experienced strong price growth in the past year, historically they have lower capital growth than homes.

• Body corporate fees in high-end complexes with facilities such as pools and gyms can be upwards of $20,000.

For house buyers struggling to stretch their budget, apartment living is worth considering, particularly if any tax breaks apply. Never say never. And when in doubt, why not try what our case study couple did and try before you buy by renting out your existing home to cover rent in an apartment for a year.

Case Study

This Brisbane family says swapping their large family home for an innercity unit has been a lifestyle game-changer.

Will and Natalie believe they’ve won an extra 10 hours of leisure time each week by ditching their suburban home for an inner-city unit.

About 18 months ago they moved, with their three children, from a five-bedroom, three-bathroom house with a swimming pool in suburban Brisbane into a three-bedroom, two-bathroom inner-city unit.

Although initially sceptical about the significant compromise on space, Will is now adamant, saying: “It’s easily the best thing we’ve ever done. We love it”.

The clincher has been finding an apartment directly across the road from their children’s inner-city high school. It means the kids now walk to school, gifting everyone a more relaxed start to the day and cutting out hours of shuttling back and forth in traffic jams.

Will says it was a life-stage change that prompted the move, as the couple’s children one by one left their local primary school and started at an inner city high school. The logistics of varying pick-ups, drop-offs and sporting commitments meant they were spending upwards of 10 hours a week in the car and calling on grandparents for help.

They had been toying with the idea of a move when they spotted a new development with family-sized apartments across the road from their children’s school. It seemed ideal, but rather than burning their bridges, they rented out their home and rented the unit.

“We just wanted to give it a go,” says Will. Within a year, they’d sold their house and are now on the hunt for a four-bedroom unit.

There have been compromises, Will says. But they have all been worth it. The family had a massive cull that involved many trips to the dump. But even that has been an unexpected positive. “It’s not been a bad thing to get rid of a whole heap of stuff we never used,” Will says.

And learning to live a more minimalist life has brought happiness and saved money.

Had the children been younger, they probably would have missed the pool and backyard more, Will says. But it’s not something that has been an issue, with school sport filling the gap.

A massive bonus for Will has been the security of living in an elevated unit and peace of mind that brings.

The main difficulty, he says, is a shortage of four-bedroom units (or at least ones that don’t come with a luxury price tag), as developers play catch up with demand.