The hidden advantage from small households for property buyers

If you’ve been watching the property market and wondering where the opportunities lie, here’s something that might surprise you – more than 60% of Australian households are made up of just one or two people, yet, most of our housing stock is still geared toward families.

That’s the “great mismatch” highlighted in Cotality’s latest research and it’s opening up strategic windows for buyers and investors in our biggest cities.

Sydney, Melbourne and Brisbane are all showing signs of structural change.

While three- and four-bedroom homes dominate the landscape, the real demand is shifting toward smaller, well-located dwellings that suit singles, couples and downsizers.

In fact, one-bedroom and studio homes make up just 6% of the national housing stock, despite one-person households accounting for 27% of the population.

This mismatch creates inefficiencies, but also opportunities.

For investors, it means targeting undersupplied segments of the market where demand is quietly building.

Think boutique apartments near transport, lifestyle hubs or employment centres.

For homebuyers, it’s a chance to secure a property that truly fits your needs – without paying for space you won’t use.

Brisbane continues to shine with strong interstate migration and affordability, while Melbourne’s inner-ring suburbs are regaining momentum, especially for downsizers and professionals.

Sydney’s prestige and middle-ring markets remain resilient, with savvy buyers snapping up well-positioned units and town homes.

The key takeaway? Don’t just follow the crowd, follow the data.

The Cotality report shows that smaller households are the majority, yet our housing pipeline is still catching up. That means early movers can benefit from capital growth and rising rental yields as supply adjusts.

At Metropole, we help clients build wealth through strategic property decisions. Whether you’re buying your first home or expanding your portfolio, now is the time to think differently.

Look beyond the traditional “family home” model and consider what the future of housing demand really looks like.

About Brett Warren Brett Warren is National Director of Metropole Properties ensuring we deliver the highest quality strategic advice to our clients and help them buy A-grade homes or investment-grade properties. Brett is a successful property investor and after many years with Metropole is still passionate about getting the best results for his clients as he has always been.