Going solo: The hidden reason why Australia needs more homes than ever

The rise in single person households is exacerbating the housing crisis — and it shows no evidence of slowing down, according to new findings.

Research by Ray White says the number of people living alone in Australia is on the increase and is impacting the volume and style of homes being built.

Data from the RBA and the ABS showed that more than one in four households in Australia now have just one occupant.

The average size of households increased during the early stages of the COVID-induced lockdowns as young people in particular returned to the family home. However, by the end of 2020, that trend started to reverse resulting in the average household size hitting a historic low of 2.48 people by August 2022.

Chief economist at Ray White, Nerida Conisbee said the results seem counterintuitive at first.

“With lockdowns frequently restricting visitation levels during the pandemic, it would have seemed intuitive that people would move in together to have company. The opposite however occurred. Rising wealth as a result of record savings rates led to more people moving out on their own,” she said.

“This higher demand for housing from more single person households led rents to rise even though population growth was very low.

“Given the opportunity (and the money), it appears that there is a strong preference for people to not be surrounded by too many people in their homes.”

The impact on the demand for increasing levels of housing has been significant.

“A rough calculation suggests that across the Australian population of more than 25 million people, a decline in (the Average Household Size) AHS of the magnitude observed between early 2020 and September 2022 (around 1 per cent, without any change in population growth) would alone imply an increase of around 120,000 households,” a report authored by Nalini Agarwal, James Bishop and Iris Day for the RBA said.

While the rising numbers of single person households may appear to be voluntary, Ms Conisbee said that it was not always the case. This was especially true for older Australians living in three or four-bedroom homes.

She said the existing housing stock was not keeping up with changing demographic needs.

“Australia is dominated by houses with three or more bedrooms,” Ms Conisbee said.

“Most households with just one person have more than two spare bedrooms. While there is likely a preference by some to have a lot of spare rooms, the reality is that finding a home with just one or two bedrooms is difficult unless you want to live in a high density area or in a high rise apartment building.

“There is a growing requirement for smaller medium density homes, particularly in inner and middle suburbs around Australia.”

A landmark Watsons Bay residence formerly owned by businessman Mark Bouris has returned to the market, bringing one of the harbourside village’s most distinctive homes back into play.

The five-bedroom property at 23 Robertson Place occupies 654 square metres opposite Robertson Park, within footsteps of Watsons Bay Beach, the ferry wharf and the celebrated restaurants lining the foreshore.

Its position places the home at the centre of one of Sydney’s most recognisable harbour villages, yet its substantial proportions, private outdoor areas and garaging give it a degree of separation rarely found so close to the waterfront.

The residence was previously owned by Bouris, the founder of Wizard Home Loans and chairman of Yellow Brick Road. Property records show it last changed hands in November 2013 for $7 million, having sold for $890,000 in 1995.

That 2013 transaction was handled by prestige agent Bill Malouf through Highland Double Bay. Bouris was the vendor when the home last sold.

Architect Malcolm Sholl designed the contemporary residence around a fluid connection between its interiors and outdoor entertaining areas. Extensive glazing draws natural light into the principal rooms, while district views take in the Sydney Harbour Bridge.

Travertine flooring extends through the principal living areas and out towards the terraces, reinforcing the relationship between the home and its coastal setting.

At the centre of the residence is a marble kitchen equipped with Gaggenau gas appliances and an integrated Miele coffee machine. It connects to expansive open-plan living and dining areas designed for both family life and large-scale entertaining.

Five double bedrooms are accompanied by three bathrooms and a guest powder room. Informal living spaces include a home cinema.

Outside, there’s a 23-metre lap pool and an alfresco entertainer’s terrace. Internal access from the garage and accommodation for four cars are especially valuable in the tightly held village location.

The address also carries an unusual fragment of local architectural history. Woollahra planning material identifies portions of an early Victorian cottage dating from about 1839 within the contemporary three-storey residence, placing the property within the wider Watsons Bay heritage conservation area.

The home made headlines for another reason in January 2025, when a Ferrari left the road and struck the property. Two occupants of the vehicle were taken to hospital following the incident.

The Agency’s Ben Collier has a $20 million guide.

Watsons Bay remains one of Sydney’s smallest and most tightly held prestige markets. There have only been two house sales in the suburb so far in 2026. The suburb record was set late last year when yachtie Linda Goddard paid $35.5 million for a Pacific Street waterfront.

Going solo: The hidden reason why Australia needs more homes than ever

Changing demographics are exacerbating demand for certain types of housing