Buyers may be willing to downsize the size of the block of land they want to live on, but they aren’t prepared to live in smaller homes.

As vacant land becomes more expensive, homebuyers are going for smaller blocks, according to PropTrack data.

The median land area of sold houses has steadily declined by nearly 4% over the past decade, falling from 670sq m in 2015 to 645sq m in 2025.

As demand for housing continues to rise, particularly in major cities where land is constrained, developers are opting for smaller lots to keep homes more affordable.

But when it comes to the size of house buyers want, many are still looking for the same thing, with Australian Bureau of Statistics data showing the average floor area of a newly built house has been at around 241sqm, for the past decade.

PropTrack says this suggests that while Australians are accepting smaller yards, they are not compromising on indoor space.

“The traditional backyard may be shrinking, but the desire for comfortable, well-designed living spaces remains unchanged,” it says.