Only around 4% of Australians live in a high-rise apartment — that’s four storeys or more — according to the 2021 housing census. That tiny figure sits awkwardly next to decades of government policy pushing people upward. Since the 1990s, when prime minister Paul Keating argued there was “more to life than the quarter acre block”, planning rules have consistently favoured density. Yet the data shows something stubborn: Australians aren’t choosing high-rises in anywhere near the numbers planners expected.
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The people who do live in high-rises are younger, more likely to have been born overseas, and far less likely to have children. They move frequently — roughly twice as often as homeowners — and more than 60% of them say they hope to move somewhere bigger. That last figure is the one that matters most. It tells you that for most residents, high-rise living is a phase, not a destination. Family-sized apartments are rare in Australia, and the ones that exist sit firmly in the luxury bracket. Here’s what you actually need to know.
The central term you need to understand here is Build to Rent — a model where large-scale apartment blocks are built specifically for the rental market, not for individual sale. Australia is embracing this approach, and it’s changing what high-rise developments look like. But a key question remains: does a tower built for renters solve the deeper mismatch between what people actually want and what high-rise apartments deliver?
What I tend to notice is that the conversation about high-rise living often skips this mismatch entirely. People talk about density targets and infrastructure savings without asking whether the product on offer works for the people who might live there. Worth weighing against the convenience of a shorter commute is the reality that you’re probably not raising a family in that two-bedroom unit. For a deeper look at how the broader Australian housing dream is shifting, read our article on whether home ownership is dying.
The Real Cost of High-Rise Living in Australia
The purchase price or weekly rent of a high-rise apartment is only one layer of the cost picture. You also need to look at the trade-offs that don’t show up on the listing. High-rise living typically means a smaller dwelling in exchange for a more central location — closer to schools, parks, shops, and work. That saves you commute time and transport costs. The infrastructure — water, sewerage, power — is cheaper to deliver per dwelling in a high-rise than in detached housing.
But those savings come with real limits. Most high-rise apartments in Australia simply aren’t designed for families. The ones that are tend to sit at the luxury end of the market and are unaffordable for the typical household. So the trade-off isn’t just space for location — it’s space for location, with a ticking clock. The data backs this up: more than 60% of current high-rise residents hope to move to a larger home. That tells you the apartment they’re in now feels too small.
For renters, the financial picture is even tighter. High-rise dwellers are about twice as likely to be renters than homeowners. They also move roughly twice as often as homeowners do. Each move comes with bond transfers, removalist costs, and the time cost of finding a new place. For rentvesting as a strategy, that turnover matters — it eats into any gains from location convenience. And strata fees in high-rise buildings can run into thousands per year, a cost that renters pay indirectly through higher rent and owners pay directly.
| Factor | High-Rise Apartment | Detached House |
|---|---|---|
| Typical location | Central, close to amenities | Suburban, often car-dependent |
| Dwelling size | Smaller, limited family space | Larger, more flexible |
| Commute time | Shorter | Longer |
| Infrastructure cost per dwelling | Lower | Higher |
| Family-friendly options | Rare and expensive | Common across price ranges |
| Likelihood of renting | ~2x more likely | Lower |
| Resident turnover | Higher (move ~2x as often) | Lower |
For someone looking at this decision practically, the question isn’t whether high-rise is cheaper — it’s what you’re giving up to get that lower commute cost. If you’re a single professional or a couple without children, the trade-off might work well for years. If you’re planning a family, the maths changes fast.
Where the High-Rise Promise Falls Short
The idea that high-rise living is simply a smarter, more efficient way to house a growing city runs into real problems once you look at who actually lives there and what they want. Three specific gaps stand out.
Assuming density equals desirability
Policy makers have pushed high-rise density for decades, but the resident data tells a different story. Only 4% of Australians live in high-rises, and the majority of them want to leave for something bigger. That’s not a sign of a housing model that people choose by preference — it’s one they tolerate for a period. The government wants more residents in high-rises, but the residents themselves want more space. That gap doesn’t close by building more towers if the towers themselves aren’t designed for the households that need them.
Missing the family market entirely
The research is blunt about this: larger apartments for families are rare in Australia, and those that exist are luxury-priced and unaffordable. So the typical high-rise apartment is a one or two-bedroom unit that works for a single person or a couple, but not for a family with children. And yet the policy push for density assumes families will eventually choose apartments. They mostly don’t — because the product isn’t there at a price they can pay. Build to Rent developments are starting to change this, but slowly.
Treating high-rise as a permanent solution
High-rise residents move roughly twice as often as homeowners. They’re younger, more transient, and more likely to be renters. This isn’t accidental — it’s structural. The apartments don’t accommodate the life stages that follow. What I tend to notice is that people assume high-rise living is a long-term choice when the data shows it’s usually a short-to-medium-term one. Planning a high-rise purchase as if it’s your forever home is a mistake if you haven’t checked whether the apartment can actually flex with your life. A product like apartment storage solutions can help maximise a small space, but no amount of clever shelving turns a two-bedroom unit into a family home.
What High-Rise Living Actually Looks Like Day to Day
High-rise living isn’t a single experience — it varies by building quality, location, management, and your own household situation. But a few patterns hold across most Australian high-rise developments.
Location and commute trade-offs
The main appeal is proximity. High-rise buildings tend to go up in central areas where land is expensive, which means you’re closer to work, schools, parks, and shops. That cuts your commute time and transport costs. For a single person working in the city centre, that trade-off can save hours a week. But the closer you are to the centre, the smaller the apartment tends to be for the price. You’re trading square metres for minutes.
Building management and strata reality
High-rise buildings run on strata title arrangements. Owners pay quarterly strata fees that cover building insurance, maintenance of common areas, lifts, security, and sometimes utilities and amenities like a pool or gym. Those fees can increase sharply after the building ages or if a major defect emerges. For renters, those costs are baked into the rent, but they still affect affordability over time. Before buying or signing a long lease, it’s worth checking the strata report for any upcoming special levies or disputes. If you run into a legal question about strata or landlord-tenant issues, real estate law advice can help clarify your position.
Apartment size and layout limits
Most Australian high-rise apartments are one or two-bedroom units. Three-bedroom apartments exist but are typically in the luxury segment. The layout tends to favour open-plan living with limited separate rooms. That works well for a couple but creates problems for families, flatmates, or anyone who works from home and needs a dedicated space. The research shows that over 60% of current residents want more space — that’s the single clearest signal that the product doesn’t match what households actually need.
Build to Rent as an emerging option
Australia is seeing a wave of large-scale Build to Rent developments. These are blocks owned and managed by a single institutional landlord, built specifically for the rental market. The model promises longer leases, professional management, and amenities designed for renters rather than for sale appeal. It’s still early, but it could change the high-rise experience by aligning the building’s design more closely with what renters actually want rather than what sells fastest off the plan. For a comparison of strategies, building versus buying covers the broader decision framework.
Frequently Asked Questions About High-Rise Living
Is high-rise living cheaper than a house in Australia? ▾
Why do most high-rise residents want to move? ▾
Are high-rise apartments a good investment? ▾
Can families live comfortably in a high-rise? ▾
What is Build to Rent in Australia? ▾
What should I check before buying a high-rise apartment? ▾
The Gap Between Policy and Reality
Governments have spent decades pushing Australians toward high-rise living. The data suggests the push alone won’t work. Only 4% of the population lives in high-rises, and most of those residents want to leave for something bigger. The problem isn’t that Australians are stubborn about their quarter-acre blocks — it’s that the high-rise product on offer doesn’t fit the households that need housing. Family-sized apartments are rare and expensive. Build to Rent is still emerging. Until the actual apartments match what people need at different life stages, high-rise living will remain a temporary option for most, not a long-term solution.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read why more Australians are exploring lease options as a property strategy.
Sources and Further Reading
How to use real estate to generate generational wealth in Australia — Looks at the bigger picture of property as a long-term asset, beyond the high-rise question.
The Conversation (2025). The government wants more of us living in high-rises. Here’s why Australians don’t want to. 🔗
The Times Australia (2025). The government wants more of us living in high-rises. Here’s why Australians don’t want to. 🔗
