Australians who are chasing the dream of building their own home are finding that land sizes are shrinking, but at the same time, the price of land is still climbing, and access to land where buyers can afford to build their homes is vanishing fast.

Across Melbourne, Adelaide, and southeast Queensland, the average lot size has fallen while the price tag has risen, forcing families to compromise on space just to get a foothold in the market.

In Melbourne, research has shown the average block size has shrunk from 400m2 in 2020 to 361 m2 today, while prices have changed from $319k- $399k. Melbourne does remain the only mainland capital with a healthy supply of vacant land; however, the window of opportunity is narrowing.  The closer you are to the CBD, the higher the price you will pay and the smaller the lot size will be. 

Adelaide results show lot sizes decrease from 475m2 to 375m2, and prices increase from $175k- $335k.

Southeast Queensland does show a marginal increase in lot sizes from 417m2 to 420m2; however, this comes with a doubling in the median price from $242k to $443k. 

Oliver Hume chief economist Matt Bell said shrinking lots and rising prices were a direct result of limited land supply, coupled with local councils longstanding focus on preserving suburban character and heritage rather than prioritising housing.

He said high demand and population growth meant Australians were increasingly accepting smaller blocks, with builders adapting to deliver better homes on tighter footprints.

There are pockets of opportunity for buyers who are willing to compromise on size or location. The message is clear; however, the vacant land is becoming scarcer, and the era of spacious living on an affordable block is coming to a close.