Unlike European cities where families readily embrace apartment living, Australians have long clung to the ideal of a family home on a block of land with a spinning Hills Hoist. But with shifting affordability and lifestyle priorities, is the demand for family-sized apartments starting to grow?
Tim Abbott, Director at Ray White Lower North Shore, says the market is undergoing a noticeable shift.
“For a long time, the strongest demand for apartments came from downsizers. Developers responded by building high-end, spacious three-bedroom apartments,” he explains.
But in recent years, Sydney’s apartment market has begun accommodating a broader buyer pool, including families looking for a more practical alternative to houses.
Traditionally, restrictive zoning laws across many urban areas, including Sydney’s Lower North Shore, meant that most apartment developments were small-scale boutique projects.
However, with recent planning changes encouraging greater density around transport hubs and town centres, larger developments are becoming more common.
“What we’re seeing now is an increase in family-sized apartments, four-bedroom options and oversized three-bedrooms, to cater to buyers who still want space but not the maintenance of a house,” Tim says.
“There’s a definite demand for apartments that can accommodate families. We’re seeing interest from buyers who don’t necessarily want the responsibility of maintaining a house and garden but still need space for growing children.”
A prime example is the Willoughby Grounds project, which offers larger apartments with access to communal gardens, outdoor seating, and barbecue areas.
These spaces are designed to appeal to a mix of buyers, including families who prioritise convenience and lifestyle over traditional homeownership.
Of course, for many buyers, affordability is playing a key role in this shift.
“The price difference is substantial,” Tim notes. “For buyers who want to stay in a prime location but avoid the high cost of a house, these apartments are an attractive alternative.”
A shift in the Aussie mindset?
While apartment living is the norm for families in European cities, Australians have traditionally associated family homes with large backyards and quarter-acre blocks. However, changing lifestyles are prompting a rethink.
“There’s still a strong desire for houses, but we’re seeing more people who prioritise convenience,” Tim says. “Busy professional couples with children don’t want to spend their weekends maintaining a big yard. Instead, they’re looking for apartments with shared green spaces and well-designed layouts.”
Now, developers are adapting by focusing on liveability.
“A lot more thought is going into apartment design—better natural light, dual aspects, and cross-ventilation,” he says.
“There’s a real push to make apartments feel like genuine homes, not just compact living spaces.”
For real estate agents, this trend presents a new opportunity. Understanding the evolving needs of buyers, particularly families, will be key to positioning apartment offerings effectively.
Agents who can highlight the benefits of low-maintenance living, affordability, and well-designed shared spaces will be well-placed to capture this growing market segment.
“The idea of the family home is changing,” Tim says.
“As Sydney continues to grow, apartment living will become more common across all demographics, including families. The demand is there; it’s just about making sure the right products are available.”
