Perth faces a paradox, while many newly built and advertised homes are growing larger, household sizes are decreasing. This mismatch—large homes for tiny families—impacts resale dynamics, energy consumption, affordability, and suburban development.

The trend offers options for buyers, sellers, and agents (even boutique firms like Bargoti Real Estate): repositioning significant properties for multigenerational or multipurpose living, differentiating listings with flexible floor plans, or turning extra rooms into income-generating spaces.

One-person and two-person households now make up a sizable share of homes in Perth and WA, where household sizes have decreased significantly over the years. At the same time, Perth’s housing market has experienced a robust price recovery and demand, with rising median prices and limited supply that are affecting lot sizes, product types, and developer choices.

This article evaluates the phenomenon’s local impact in Perth, explains its causes, and offers valuable strategies for agents, investors, and homeowners.

What You Need to Know

• Australia’s housing market is dominated by larger homes, underscoring the need for policy reform to match homes with genuine demand better. The majority of Australian households consist of one or two individuals.
• 61% of families consist of just one or two individuals, yet the majority of residences have three or four bedrooms.
• The majority of households currently consist of single people and couples without children, yet families remain the focus of planning and policy.
• Although the majority of Australian homes are designed for families, over 60% of households consist of just one or two people.
• There is an apparent discrepancy between the types of homes we are developing and the people who live in them, according to a recent report from Bargoti Real Estate.

Who really makes up Australia’s households?

1. Most Australians see a family with children living in a home with three or four bedrooms when they think of the “Great Australian Dream”. However, statistics indicate that dreams and reality are not the same.

2. The bulk of households are single people and couples without children, which raises concerns about how well our housing market is meeting actual demand.  

The ABS’s demographic data reminds us that there are various household types and housing needs, even as families remain a crucial factor in our housing system.

3. In actuality, families with dependents make up about 30% of Australian homes. Notably, 27% of adults live alone, and 31% are couple families without dependents. It may come as a surprise to learn that just one or two people occupy 61% of Australian homes.

4. According to the data, about 40% of Australian homes headed by a single individual are occupied by individuals aged 65 or older. The average number of individuals 65 or older in couple homes without dependents was 0.8; thus, it makes sense to expect slightly less than half to be older couples.

5. Two-person households make up the largest share of households, yet three-bedroom homes make up the largest share of homes. One-bedroom and studio dwellings collectively account for only 6% of Australia’s housing stock, with one-person households having the next-highest share at 27%.

Why bigger homes still dominate

1. A home with more bedrooms than occupants is not intrinsically flawed. Having more bedrooms could be highly appealing given the popularity of home offices, the need for in-home care as people age, and the availability of space for hobbies and guests.  

2. Because they intend to have children, it is also logical to expect that many couple-family homes without dependents contain more bedrooms. One reason why new homes have generally gotten bigger over time is that they need more amenities to accommodate the increasing distance from central business districts.  

3. Homeowners may find it more convenient to have home amenities like a gym, workstation, or home theatre as we expand farther and farther out on the outskirts of cities. It is noteworthy, therefore, that the proportion of units in the new housing pipeline is steadily increasing.  

4. According to ABS data, residences other than houses accounted for almost 40% of approvals in the decade ending in June 2025, up from 37% in the previous decade. Smaller households may eventually have more suitable housing options.

5. Larger homes have been in great demand; nationwide, the five-year annualised growth rate for four-bedroom homes is the highest at 8.7%, while that of 0–1-bedroom homes is only 3.7%.  

6. In fact, attempting to purchase and hold houses rather than apartments, or larger houses rather than smaller ones, may be motivated in part by the prospect of higher capital gains.

7. Although having more bedrooms than occupants in a home is perfectly acceptable, there may be certain inefficiencies in the distribution of accommodation. After all, a “traditional” family of four might require a three-bedroom home more than a two-person household.  

8. However, according to ABS data from the 2021 census, there were more two-person homes with three bedrooms (about 1.3 million) than three or four-person households (around 1.1 million).

The efficiency question–What is the solution then?

1. Governments could make it more costly to live in larger housing and less expensive to live in a smaller home. This prompts many to support tax change, such as doing away with stamp duty, which lowers the cost of house relocation, and substituting it with a broad-based land tax, which increases expenses the more land you own.  

2. Both of these solutions are politically challenging because they would require switching from a tax that applies to only a small percentage of voters who buy real estate each year to one that taxes two-thirds of voters (those who own real estate). However, older Australians who are outright homeowners might be encouraged to downsize as a result.

3. The statistics would also stack up if pension asset requirements were revised to incorporate the family home’s value. In our major cities, efforts are already underway on the supply side to build well-located flats that can accommodate smaller households; nevertheless, changing demand through tax reform may facilitate the adoption of these new residences.

The Emotional and Cultural Drivers Behind “Bigger Is Better”

1. This preference for space has a psychological component in addition to an economic one. Larger homes are culturally associated with comfort, independence, and individual success among Australians, particularly West Australians.

2. A gym, a hobby room, a place to visit family, or simply the satisfaction of owning a “dream home” are all possible with more rooms. Despite the shift in lifestyle towards sustainability and minimalism, there is still a strong desire to buy a huge house.

3. This desire is enhanced in Perth, where land has historically been more accessible and plentiful. Perth buyers can still afford size—at least for the time being—unlike in Sydney or Melbourne, where the cost of land necessitates compact living.

4. Developers have taken advantage of this by portraying larger homes as affordable luxuries that fit the perfect suburban lifestyle, with several living areas, double garages, and outdoor entertaining areas.

5. Practical realities, however, may be obscured by this cultural devotion to space. Large homes often lead to higher maintenance costs, higher energy bills, and a sense of emptiness for many small families.

6. Particularly for couples or retirees, maintaining expansive gardens, cleaning unused rooms, and heating or cooling significant floor areas can make daily living more difficult. What previously represented wealth may eventually seem like an unwarranted weight.

Underused Space and Its Implications

1. The heart of the dilemma is encapsulated in the term “underutilised housing.” When a house meant for five or six people is occupied by just two, much of the property remains unoccupied most of the time.

2. Large backyards are neglected, dining rooms are hardly used, and spare bedrooms are converted into storage areas. There are consequences for this underuse outside of the home.

3. Large homes use more resources and have a greater environmental impact. They need more water to maintain lawns and gardens, more electricity to run them, and more resources to build.

4. From a societal standpoint, they contribute to urban sprawl, as larger homes on larger lots push development farther out, extending transportation and infrastructure.

5. Economically, they tie up land and capital that could otherwise accommodate more diverse housing types, such as duplexes, townhouses, or apartments that better fit the needs of modern Perth households.

6. The contradiction of “big homes for small families” points to a more significant shift in Perth’s housing market.  It represents a turning point in urban development, lifestyle demands, sustainability, and changing demographics.

7. There will be greater pressure to reconsider the size, layout, and purpose of housing as Perth’s population grows and the government encourages infill development.

Perth by the numbers — household structure, prices and supply

1. Household size is falling in WA and Perth. The average household size in WA was 2.5 in 2021, down from 3.4 in 1971; the City of Perth shows an exceptionally high share of one-person households — over 40% in some inner-city areas. This reflects ageing, single-person households, and changing family formation.

2. Perth’s property values in 2024–2025 rose strongly after earlier soft patches, with multiple data sources reporting year-on-year growth and median house values rising into the high hundreds of thousands, making Perth a competitive market nationally. Local forecasts show continued price growth into 2025, driven by migration, interstate flows and limited supply.

3. Supply constraints and strong demand —vacancy rates and new housing completions haven’t always kept pace with migration inflows —have contributed to competition for stock, especially in commuter-friendly suburbs. National discussions on migration vs housing supply identify Perth as a region with a supply-demand imbalance.

Why bigger homes keep being built — developer, buyer and policy drivers

1. More bedrooms and open-plan living are simple value-sell features, and developers optimise for both perceived value per square metre and broad market appeal.

2. Larger footprints have been made possible by lot sizes in outer suburban communities, and “house-and-land” packages frequently promote residences with four to five bedrooms as the norm.

3. These bundled homes are targeted at a wide range of buyers, including investors, upsizers, expanding families, and empty nesters looking for extra space. (See suburban listings and local estate product sites.)

4. Residences with many bedrooms, a garage, and outside areas are marketed as “family-friendly,” even though the final occupant may be a couple. Investors like residences that maximise rental revenue and capital appeal.

5. Additionally, owner-occupiers frequently “buy for the future,” selecting larger homes in anticipation of having kids or multipurpose spaces (e.g., a gym or home office). Larger footprints have historically been made possible by local planning frameworks that support detached residences on moderate-to-large lots.  

6. Due to Perth’s relative affordability compared to Sydney and Melbourne, buyers from other states frequently trade up, selecting larger properties for the same or less than they would pay in their home city.

7. This results in an increase in the average size of dwellings purchased by new buyers. Market data and media coverage indicate that buyers from the East Coast are interested in WA.

Who Occupies These Large Houses in Perth? (Demographic Snapshot)

This section delves into the people who live in Perth’s enormous homes, the social and economic factors that influence their decisions, and the implications of this trend for real estate agents, notably Bargoti Real Estate, which works directly with clients navigating these changing demographics.

• A busy family of five would come to mind when we envisage a spacious suburban home with four bedrooms, two bathrooms, several living areas, a cinema room, and an outdoor area.  
• However, in much of Perth, that perception is no longer accurate.  
• These enormous homes are increasingly being occupied by single people, investors, tenants, smaller family units, and empty nesters.
• When we look at who actually resides in “big homes for small families,” the absurdity becomes clear.  
• Perth’s average household size has consistently decreased over the years, despite an increase in the size of newly built residences, according to the Australian Bureau of Statistics (ABS) and several local community profiles.
• The average household size in Western Australia is currently about 2.5 persons per household, compared to over 3.0 in the early 1980s, according to ABS 2021 Census statistics.  
• Two-person families currently account for almost half of all private residences in numerous inner-ring and middle-ring suburbs, while single-person homes account for 25–30% in other areas.
• Despite these developments, the average newly constructed home remains spacious, often exceeding 200 square meters and offering several spare rooms, particularly in outlying districts such as Baldivis, Brabham, and Ellenbrook.  
• Due to this discrepancy, a growing percentage of properties are underoccupied, with significantly fewer occupants than their size would suggest.

So who are these occupants, and why are they drawn to big homes? Let’s break it down.

1. Small Family Households: Couples with One Child or Planning Families

• Predominantly small family households, couples with one child, or those planning to start or grow their families.
• Generally between the late 20s and mid-40s, representing young professionals and early-stage families.
• These buyers value extra space, flexibility for future needs, and the long-term satisfaction of owning a detached home.
• Purchasing a larger home is often viewed as future-proofing — buying more space now to accommodate children, guests, or a home office later, avoiding the hassle of upsizing later.
• Perth’s housing market remains relatively affordable compared to Sydney or Melbourne, allowing families with moderate combined incomes to own spacious four-bedroom homes within reasonable commuting distance of the CBD.
• Suburbs like Brabham, Byford, and Alkimos are attractive to this demographic due to modern estates, proximity to schools and playgrounds, and a strong sense of community.
• The family-friendly environment, planned infrastructure, and safe surroundings make these suburbs ideal for couples seeking stability and long-term settlement.
• Despite owning large homes, many families initially use only part of the space; spare bedrooms often serve as guest rooms or storage areas for several years.
• This trend contributes to underutilised housing stock, as many large homes remain only partially occupied even among growing family households.

2. Empty-Nesters and Retirees: Trading Up, Not Down

• Empty-nesters and retirees — typically aged 55 and above — are increasingly choosing to trade up to larger or more luxurious homes rather than downsizing.
• Contrary to common assumptions, many older couples in Perth are upgrading after their children leave home, viewing this stage as an opportunity for comfort and reward.
• After decades of work and mortgage repayments, they see this as a time to enjoy the “dream home” they’ve always wanted — with more space, luxury, and convenience.
• Lifestyle goals drive their decision to upgrade — they desire homes that offer comfort, flexibility, and social appeal rather than child-rearing practicality.
• Modern designs with open-plan layouts, high ceilings, energy-efficient technologies, spacious kitchens, and guest rooms for visiting family members.
• For many, the home becomes a symbol of success and life achievement, reflecting years of effort and stability.
• Suburbs such as Ellenbrook, Burns Beach, Secret Harbour, and Harrisdale are popular due to quiet surroundings, golf courses, coastal proximity, and community amenities.
• In Australia, homeownership often represents personal success; hence, downsizing feels like a step backward to many retirees.
• Limited availability of well-designed, smaller homes, villas, or townhouses with good amenities discourages downsizing.
• Increasingly, Perth’s large homes are occupied by two-person households aged 55+.
• Understanding their motivations allows for targeted positioning — focusing on comfort, prestige, and lifestyle appeal rather than just home size.

3. Investors and Their Tenants: Shared Living and Rental Dynamics

• A significant portion of large Perth homes is owned by investors, both local and interstate, who target the broad rental market.
• Investors often buy four- or five-bedroom homes as they attract diverse tenants — families, professionals, and shared tenants.
• Ordinary occupants include young professionals, students, and FIFO (Fly-In Fly-Out) workers who share large homes to split costs while enjoying more space and privacy.
• The co-living or shared tenancy model is increasingly popular, especially in suburbs with strong connectivity and job access.
• Areas like Canning Vale, Baldivis, and Midland are key hotspots due to affordable rents, ample housing supply, and proximity to universities or industrial hubs.
• Large homes offer rental flexibility — they can be leased to families, shared with tenants, or used for short stays (subject to zoning rules).
• In Perth’s tight rental market, such properties often deliver strong rental yields and steady demand.
• Shared homes require stricter property oversight, including maintenance, tenant coordination, and adherence to local regulations.
• Changes in tenancy laws or council rules can impact the feasibility of multi-tenant arrangements, making professional management essential.

4. Single Occupants: Rare, But Rising

• While still uncommon, single occupants in large homes are becoming more visible across Perth’s housing market.
• Includes young professionals seeking independence, separated adults maintaining family homes, and older widowed individuals who remain in familiar properties after family members move out.
• ABS data shows single-person households exceed one-quarter of all dwellings in several Perth suburbs, especially in inner and middle-ring areas.
• Although most singles prefer smaller homes or apartments, many still live in large houses because suitable smaller dwellings are scarce in suburban areas.
• New developments in many suburbs continue to focus heavily on detached, family-sized homes, leaving few compact options for single buyers or tenants.
• Some singles live in large homes because they inherit family properties, while others buy larger homes for investment value or future resale potential.
• Many single occupants use only part of the home — occasionally renting out spare rooms or converting areas into home offices or for side income.
• Highlights a mismatch between housing supply and demographic demand, as single-person households grow faster than suitable small-dwelling units become available.

Perth’s large homes tell a story of changing times. They are occupied by a patchwork of people — small families aspiring for stability, retirees enjoying hard-earned comfort, investors seeking returns, and singles navigating limited housing choices. Each group interacts with space differently, yet all contribute to a market defined by underused capacity and evolving aspirations.

Design & Lifestyle Consequences — How Houses Are Used (or Not)

1. Grand facades, broad driveways, open-plan living areas, and a variety of dedicated rooms, such as home theatres, study, formal lounges, rumpus areas, and even sculleries behind designer kitchens, are standard features of homes in Perth’s more recent suburban estates.

2. A specific image of family life—the conventional home with parents, kids, and maybe visiting relatives—was taken into consideration when designing these homes. However, that archetype is no longer prevalent in modern-day Perth.

3. The contemporary household is more mobile, older, and smaller, and uses space in a variety of ways. As a result, there has been a subtle but significant change in how people live in these big houses—or, in many cases, not as intended.

4. Many of Perth’s large homes were created during a time when family life was characterised by stability. The plan was straightforward: a growing family would require many bedrooms, distinct living areas for adults and kids, a formal dining room for get-togethers, and possibly a patio for entertainment.

5. These designs adapted to a set lifestyle pattern in which children occupied the rooms, people worked from home, and evenings were spent in communal family areas.

6. The pandemic expedited this realisation. Space became both a benefit and a problem during the surge in work-from-home opportunities. Many Perth homes immediately adjusted, turning unused spaces into workspaces, fitness centres, or art studios.  

However, these were frequently short-term solutions found in floor plans that weren’t intended for flexible use. Traditional family dwellings’ walls and zoning restricted flexibility. The outcome? A home that feels both too large and not quite right—a mismatch between architecture and living.

Repurposing Rooms: Creative Adaptations for Modern Living

Large homes need to be reinvented for today’s smaller family. Owners in Perth are coming up with innovative uses for the extra space that once characterised family living.

1. The Home Office Revolution

• Spare bedrooms and formal lounges are being converted into workstations as remote and hybrid work become a regular part of many Perth professionals’ schedules.  
• To further separate work and home life, some homeowners have even turned garages or backyard sheds into dedicated offices. Unused rooms now have a new lease on life and align with modern work practices thanks to this repurposing.

2. From Theatre Rooms to Wellness Zones

• A defining feature of opulent homes constructed in the 2000s and 2010s, the once-trendy “home theatre” has somewhat faded.  
• Nowadays, many locals prefer streaming television in open-concept living spaces.  
• Consequently, these enclosed, dark areas are being converted into music rooms, yoga studios, or home gyms. The use changes, but the design stays the same.

3. Guest Rooms Become Multi-Functional Space

• Guest beds are often vacant because fewer extended families live together.  
• Homeowners are transforming these areas into adaptable zones, such as dual-purpose workplaces, hobby studios, or part-time Airbnb rooms.
• Perth’s rental market has become more competitive, and younger homeowners have occasionally built separate rental rooms inside larger properties to boost their income.

4. Outdoor Spaces Simplified

• Large backyards with kids playing cricket, dogs running loose, and family cookouts used to represent the Australian ideal.  
• However, inexpensive maintenance is frequently prioritised over expense in modern lifestyles.  
• Many people in Perth are downsizing their gardens, installing artificial turf, or turning their yards into low-maintenance outdoor dining areas.  
• Outdoor enjoyment is now defined by functionality rather than scale.

These adaptations show a distinct shift in values: from function over form to flexibility over tradition. Big homes still offer potential, but their actual value lies in how creatively they can be reshaped to meet evolving lifestyles.

The Cost of Unused Space

1. There is no denying the comfort that comes with having a huge home—until you see how much of it is unused. It is still necessary to maintain, heat, cool, and clean empty rooms.  

2. Higher energy costs, more maintenance requirements, and a bigger environmental impact result from this. Small households, particularly those headed by retirees or couples, may find the maintenance burdensome.

3. There is a psychological component to the problem. Many homeowners feel “boxed in” by unneeded but difficult-to-part with space. Low-level stress and financial inefficiency stem from a sense of duty to maintain every aspect of the house, from dusting unoccupied rooms to servicing ducted air conditioning systems designed for full occupancy.

4. These big homes often lack the flow that contemporary minimalism aims for in design. A feeling of separation rather than openness is produced by overly long hallways, divided areas, and unnecessary rooms.  

5. Resale appeal is affected by the fact that younger Perth buyers, especially younger professionals, often perceive these plans as outdated and burdensome to customise.

Opportunity playbook for Bargoti Real Estate — advice for sellers, buyers, and investors

Here’s practical advice, split by audience, that Bargoti Real Estate can implement immediately in listings, client conversations and marketing collateral.

1. For Sellers (how to position oversized homes)

• List several uses for extra rooms, such as a home office, a gym, a guest suite, or a space suitable for Airbnb.
• Prioritise living areas over the number of bedrooms. Small households purchase a lifestyle by demonstrating the flow of living areas, natural light, and storage options.
• Accurately highlight the expenses of energy and maintenance. Transparency regarding operating expenses, such as current bills or retrofit opportunities, is what modern buyers demand.
• Offer rooming alternatives, secondary suites, or the possibility of dual living for investor-focused campaigns (subject to approvals).

2. For Buyers (how to buy wisely)

• Urge buyers to weigh the mortgage and operating expenses against actual use; occasionally, a smaller, strategically positioned house is a better deal.
• Evaluate the possibility of conversion. Look for areas that can be improved or reduced without requiring significant structural work (e.g., convert the formal dining room to an office).
• Match larger homes in outlying areas where lifestyle and future growth are advantageous by using Bargoti’s local suburb knowledge.

3. For Investors (how to maximise yield)

• When permitted, think about multi-tenancy or split-living.  
• Making a self-contained suite out of a portion of the house can increase rental return.
• If allowed, target young professionals or shared living in inner-growth suburbs.  
• Market data may indicate areas where sharers are filling 3–4 bed rentals.

Renovation, repurposing and ROI: practical fixes that add value

If a house is too big for the actual household, practical changes can improve comfort and marketability. Priorities with strong ROI:

• Create a multi-use room (office/guest) with built-in storage
• Add a granny flat or self-contained suite
• Downsize lawns, add low-maintenance landscaping
• Insulate & upgrade HVAC and lighting to reduce running costs—sellability is improved when energy bills are low.
• Open-plan reconfiguration to reduce formal rooms and create a flexible living space.
• Smart home features targeted at small households (security, flexible heating zones) help justify a higher asking price.

Renovation ROI depends on the suburb, existing condition, and comparables; always tie recommendations to recent sales comps and local buyer appetite. CoreLogic/REIWA data helps determine which upgrades add the most value in a particular Perth suburb.

Policy, Planning and the Future — What to Watch

1. Perth’s housing story — with its sprawling homes, shrinking families, and expanding suburbs — isn’t just a reflection of lifestyle choices. It’s also a product of the city’s planning frameworks, development incentives, and policy priorities.

2. The mismatch between how homes are built and how people now live points to a deeper systemic issue: the way urban policy shapes the supply of housing types across Western Australia.

3. Building adequate dwellings is not the only difficulty since Perth’s population is expected to reach 3.5 million by 2050. It involves designing homes that are appropriate for shifting household demographics, from singles and downsizers to young professionals and small families.  

4. Perth’s planning and policy environment needs a long-term, flexible strategy to accomplish this. This entails promoting the retrofitting of current stock, supporting a variety of housing typologies, and employing data-driven local planning to foresee future requirements before they become emergencies.

Supporting Diverse Residential Typologies

1. The detached home on a suburban lot—the great Australian dream made possible by expansive estates and low-density zoning—dominated Perth’s urban planning model for decades.  

2. The postwar family structure with large families and car-dependent lifestyles was well-suited to this concept. However, it is increasingly out of step with today’s demographic realities.

3. The Australian Bureau of Statistics (ABS) reports that one or two persons currently make up over 35% of Perth households, and this percentage is still rising. However, huge, detached homes continue to make up the majority of newly authorised residences each year.  

4. Many residents lack affordable, suitable options due to a lack of housing typologies, including townhouses, duplexes, smaller homes, and well-designed apartments.

5. Until now, the pace has not kept up with the demand. This shift might be accelerated by policy incentives like density bonuses for developments that offer smaller, sustainable houses or expedited planning approvals. Access to small, reasonably priced, and linked housing will be crucial for Perth’s expanding population of young professionals, retirees, and singles.

Incentives for Retrofitting: Making Big Homes Work Smarter

1. Perth’s extensive housing stock presents both challenges and opportunities, especially in the city’s outer suburbs such as Ellenbrook, Baldivis, and Canning Vale.  

2. Many of these houses were built for larger families, but they are no longer occupied. Perth can make better use of its current housing stock rather than continue to grow outward.

Retrofitting Oversized Homes

Retrofitting refers to modifying existing homes to serve multiple functions or households. For examples:

• Splitting a large home into two self-contained units — perhaps by converting an unused upper floor or portion of the property into a rental suite.
• Adding a small, independent unit at the rear of a large property is ideal for older relatives or tenants.
• Reconfiguring large homes into shared living arrangements with private bedrooms and communal kitchens/lounges, catering to students or single professionals.

Better Data Use: Planning with Precision

1. Data is perhaps the most effective—yet underutilised—tool in Perth’s housing policy. Planning frequently responds to market forces rather than foreseeing them, but local governments can be proactive with the help of contemporary analytics.

2. Forecasts of household composition are frequently released by the Western Australian Planning Commission and the Australian Bureau of Statistics (ABS). Councils can use these forecasts to make zoning decisions that account for future demographic realities.  

3. For example, local governments can prioritise rezoning for smaller homes and higher-density development in the inner north if estimates indicate an increasing share of single-person households in that region.

4. Regrettably, many governments continue to enforce outdated zoning regulations intended for large family homes. Using dynamic mapping tools and open-access dashboards to incorporate real-time demographic data into municipal planning might completely change Perth’s approach to growth management.

The Future Outlook: Building a Smarter, More Inclusive Perth

1. The path forward for Perth’s housing market lies in balance — between tradition and innovation, growth and sustainability. The city’s challenge isn’t just to build more homes but to create a broader mix of housing options that reflect modern living realities.

2. Policymakers, developers, and real estate professionals, such as Bargoti Real Estate, play key roles in this transition. Together, they can advocate for:

• Flexible zoning policies that support compact and shared housing models.
• Public-private partnerships to develop affordable townhouses and co-living projects near transport corridors.
• Education programs to help homeowners understand the benefits and processes of retrofitting or adding ancillary dwellings.

3. In the long run, Perth’s success will depend on how well it adapts its planning mindset — from one that builds for growth to one that creates for diversity. By aligning housing design, policy, and demographic trends, the city can ensure its future homes truly fit the lives inside them.

Practical checklist for homeowners & agents (action items)

1. If you’re a seller:

• Audit unused rooms and create 2–3 staged scenarios (office, guest, rentable suite).
• Present utility bills and cost-saving upgrades.
• Work with Bargoti to price local comps and emphasise flexibility.

2. If you’re a buyer:

• Run mortgage+running-cost calculations.
• Think about conversion costs if you plan to downsize or repurpose.
• Use Bargoti’s suburb expertise to weigh location vs house size.

3. If you’re an investor:

• Check zoning for secondary suites.
• Consider whether the suburb supports sharers or family tenancies.
• Model yield under multi-tenant vs single-family scenarios.

Conclusion and outlook

Perth’s market is maturing: prices and demand have rebounded strongly, and household structures are shifting toward smaller units. The mismatch between house size and household size is both a challenge and an opportunity. For agencies like Bargoti Real Estate, the competitive edge lies in local market intelligence, creative marketing that reframes “unused” space as multi-use value, and helping clients make data-driven retrofit or selling decisions.

If planning for the future, buyers and investors should prioritise flexibility and cost-efficiency; sellers should present their homes as adaptable; and planners should promote a wider product mix to match real household needs.

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