by Feng Xue
This article was first published on The Fifth Estate on 8 July 2025.
Intermediate housing offers affordability, flexibility and connection – if we design for real lives, not just floor plans.
As Australia falls behind on its target to build 1.2 million new homes within five years, we continue to cling to a housing ideal that no longer fits the times. The image of the detached house on a quarter acre block has long defined success, but in today’s economy, that dream is not only out of reach for many — it may also be making us lonelier, less healthy, and more disconnected from the people around us.
The housing crisis isn’t just about supply and demand. It’s about the kinds of homes we build, where we build them, and how they shape our lives. While governments chase density targets, developers deliver oversized houses on distant blocks and undersized apartments in cities—each shaped more by profit than people. The result? A landscape of lookalike homes and isolated lives.
If the dream is broken, what should take its place? Could smaller, smarter, and more socially connected homes lead us toward something better?
Government-led planning reforms have attempted to boost supply, but the outcome is often cookie-cutter housing – homes that mimic the dream yet fall short in practice. Homes are now squeezed onto shrinking blocks, the average house size has grown to nearly 230 square metres – almost double that of the 1960s. The dream has expanded in scale, but not in liveability. Buyers are pushed to the urban fringe – cheaper, but a coffee is a drive away, and neighbours stay strangers.
These houses prioritise privacy and scale over community and quality. Garages, fences, and long driveways create physical barriers. Inside, key shared spaces – living rooms, kitchens, balconies—are frequently sacrificed to meet cost or planning constraints. Ironically, in trying to maximise private space, we’ve minimised the social fabric that makes neighbourhoods feel like home.
If traditional housing no longer serves us, we need to rethink the values that underpin it – and the alternatives we might design in its place.
Privacy, redefined
Australian housing design has long prized privacy, with physical and symbolic boundaries separating “mine” from “yours” But this pursuit of privacy often comes at the cost of community.
‘‘We often tend to universalise certain tropes about domesticity which the west, through colonisation, has imposed on its domestic habits.’’ - Pier Vittorio Aureli
While many developments include shared amenities, few are designed to connect the spaces people use most—like the paths from street to front door. Instead, residents are offered direct–to–door shortcuts that discourage casual encounters. Over time, many disengage altogether.
Yet strong community ties can significantly enhance both mental and physical health. A 2023 study by Neighbourhood Connect found that people with close local relationships were generally happier and more resilient. In contrast, a 2008 study in a Hispanic neighbourhood in Miami found that residents without access to semi-social spaces—such as inviting front entrances—were nearly three times more likely to experience health issues.
Social interaction isn’t just about well-being—it makes everyday life easier. A neighbour might help with a burst tap or check in after a storm. These small, informal exchanges build the kind of support networks that make communities more resilient.
Lessons from Abroad – and at Home
Other countries offer clear models. Vancouver's False Creek Neighbourhood was designed as the city’s first sustainable community, featuring diverse shared amenities. Singapore's Kampung Admiralty also integrates high-density residential, healthcare, and public spaces under one roof.
While global examples are inspiring, Australia needs its own hybrid solutions. Detached homes remain popular despite soaring costs, and policies like affordable housing or build-to-rent often focus on financial relief—but tend to replicate standard, isolating layouts with cost-cutting compromises. Collaborative models like co-living or co-housing offer great social interaction, but their intensity can be overwhelming and may not suit everyone long-term.
So, is there a middle ground—an intermediate housing model between detached homes and fully communal living? This isn’t the “missing middle” of medium-density typologies like townhouses. Intermediate housing is a broader social and design model—blending autonomy and connection through shared infrastructure and flexible use of space. These homes could become more affordable by building smaller, smarter, and sharing spaces that enhance wellbeing.
Domestic Spaces Reimagined
If we want homes that support connection and well-being, we should start with the spaces we use most: the living area, kitchen, and even the laundry. These zones aren’t just functional—they shape how we live together.
In many new homes, they’ve been pared back by cost-cutting and tight footprints. But with smarter design, they could do much more: helping us live better, not just smaller.
Living: Room to Really Live in
We often design living areas to impress—but not necessarily to live in. Whether oversized and underused or downsized to the point of dysfunction, these spaces reflect our values more than our needs. What if they were designed less for status, and more for connection, flexibility, and everyday life?
Large homes often boast generous living areas, yet they’re rarely used for genuine social interaction. At the other end, affordable housing shrinks these zones through value engineering—sometimes so much that essential furniture barely fits, and movement is restricted.
So how can small homes feel bigger—or more social? One answer is the flexible shared space: a courtyard or winter garden co-owned by neighbours, bookable when needed, with operable screens for privacy. The same logic can apply to balconies, terraces, or backyards that toggle between private and communal use.
These aren't just cost-saving ideas—they’re social infrastructure. They invite cooperation, casual encounters, and a more connected way of living.
Kitchen as Connector
More than a place to cook, the kitchen is a hub of connection—socially, culturally, and spatially. Yet in many new two-bedroom apartments, which suit the average Australian household, it’s reduced to a compact, minimalist zone. Though sleek in promotional photos, these kitchens are often under-equipped and barely functional. There’s little room for two people to cook, or even to store a dish rack or toaster. While efficient for developers, such narrow layouts limit interaction and discourage home cooking—gradually eroding both tradition and health.
Often buried deep in the floor plan, kitchens are cut off from daylight and outdoor space. But unlike bedrooms or lounges, they don’t demand privacy. Positioned near a balcony or garden, they can foster social connection—much like open commercial kitchens that animate their surroundings. Imagine preparing brunch while chatting with neighbours, or watching your kids play outside as you cook.
Kitchens also connect us in more subtle ways. In my childhood apartment block, each kitchen faced a shared corridor. Around dinnertime, the aromas drifting into the hallway became quiet introductions to the lives next door—sparking conversations the next time we met.
Laundry: More than Just a Chore
We all do laundry—but how we design for it is evolving. Private laundries offer convenience but require space and plumbing in every unit. In compact housing, shared facilities can be more efficient—freeing up valuable floor area for other uses.
Communal laundries aren’t new. In fact, they’ve existed since Roman times and are making a quiet comeback in affordable, sustainable housing. One notable example is Nightingale 1 by Breathe Architecture, where a rooftop laundry replaces individual units—improving noise control, utility efficiency, and social connection.
Pop culture—from sitcoms to cinema—has long portrayed laundromats as social spaces. With the right design and trust, they still can be. Like shared kitchens or courtyards, communal laundries remind us that even everyday routines can bring people together—if we let them.
Smaller Homes, Smarter Living
What makes a home isn’t just size—it’s how well it supports daily life. For some, that might mean a spacious kitchen over a second bathroom; for others, a study nook instead of a private laundry. These trade-offs highlight the potential of intermediate housing models: smaller, smarter homes tailored to real needs. With thoughtful design and flexible spaces, we can create healthier living environments—and more inclusive communities.
Neighbourhoods That Connect Us
Beyond the walls of our homes lies a bigger question: how does housing foster neighbourhood life? Cohesive communities thrive on trust, casual encounters, and shared routines—think tree-lined streets, friendly faces, neighbours chatting over fences or gathering for a block party. To get there, we must move beyond the cookie-cutter model and rethink not just how we build homes, but how we live in them—together.
Connection starts with small, meaningful moments. Forget the clubhouse no one uses. What about a footpath-turned street gallery, a communal herb garden, or a sheltered corner where neighbours can share a meal when the weather turns? These semi-communal spaces work precisely because they’re woven into daily life. They invite interaction—without demanding it.
But it’s not just about well-designed communal spaces. The systems behind housing—tenure, affordability, and policy—shape how connected we feel, too. A 2011 study by the Australian Housing and Urban Research Institute (AHURI) found that renters—both private and public—are significantly more likely to experience daily loneliness than homeowners: 13% and 11% compared to just 4%. The report concluded that housing is more than shelter—it’s social infrastructure. Insecure tenure, poor design, and a lack of shared space quietly deepen isolation.
Looking Ahead: A More Human Dream
The Great Australian Dream will always have its place. But for a growing number of people, it’s time for a different kind of dream—one that values connection over isolation, flexibility over bloat, and liveability over square metre count.
As we reckon with the housing challenge ahead, the question isn’t just how to build faster. It’s how to build better: smaller, smarter, more social. Because good housing isn’t just shelter. It’s a foundation for a more human way of living.