A new house density report by BankWest paints a bleak picture of Australians in blocks and backyards as homebuyers now appear to favour smaller, more affordable homes and flats amid the property market boom.
BankWest found that approvals for the construction of flats, townhouses, and semi-detached homes are almost at their highest level in two decades.
In fact, multi-unit properties occupy 43% of the entire home building approval figures of Australia. The figure is an increase of 33.7% above the 20-year average rate since November.
"It's likely first home buyers are boosting the popularity of medium density housing as they are finding it more and more difficult to afford a standalone house, especially in our capital cities," executive general manager of retail Andrew Whitechurch said.
"Increasing competition for housing and higher prices will no doubt lead to further growth in medium density housing approvals in the future."
Flats remain to be the most preferred living space in capital cities, with a ratio of nine out of 10 home building approvals.
Bankwest research also revealed that it usually takes an average of 3.3 years for a first time buyer couple to save a 20% deposit on a median priced unit compared to 4.1 years for a detached house.
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