More buyers are choosing apartments as long-term homes, reshaping borrowing patterns and loan sizes brokers should watch
The traditional property ladder — apartment first, house later — is being reshaped as more Australian buyers choose apartments as a permanent, rather than transitional, home. Industry figures say affordability, lifestyle, and lower upkeep are driving the shift, with implications for the size and structure of loans brokers are writing for this cohort.
Downsizing without compromise
Riki Heywood and her husband sold a five-bedroom house on 900 square metres to buy a three-bedroom apartment for their family of six. She says the move freed up time previously spent on upkeep.
"It's been a huge upgrade in lifestyle and a huge saving in the amount of time that we would spend on upkeep," Heywood told Domain.
Lifestyle and affordability driving demand
Brook Monahan, founder and managing director of Mosaic Property Group, says the shift reflects a genuine change in buyer intent rather than a compromise.
"Increasingly, buyers are choosing apartments not because they have to, but because they want to," Monahan told Domain.
Monahan notes that well-located apartments are giving buyers access to inner-city amenities, from waterfront precincts to parks and cafes, that would otherwise sit out of reach.
Cameron Jackson, chief operating officer of apartments and mixed-use developments at Sekisui House Australia, says buyer expectations around quality haven't dropped, even as loan sizes shrink relative to houses.
"Buying an apartment doesn't mean you're skimping on quality. Sometimes it's really the inverse," Jackson told Domain.
The financial case for apartments
For some buyers, the calculation is explicitly financial. Melbourne business owner Alisha Marfatia, who bought her apartment as an investment before deciding it suited her permanently, says a smaller loan and lower-maintenance lifestyle better serves her needs than a large mortgage further from the city.
"Buying a block an hour away from the city and the airport, and all the things that I need for work, is just not a dream for me," Marfatia told Domain.
The financial case has data behind it: national unit values grew 2% over the year to August 2026, only slightly behind the 2.9% recorded for houses, while gross rental yields on units are running at 4.6% nationally, well ahead of 3.5% for houses, according to Cotality's latest Home Value Index — a combination that helps explain why more owner-investors are choosing to stay long-term.
As more borrowers treat apartments as an end point rather than a first step, brokers may see steadier demand for smaller loan amounts across a broader range of life stages — from young professionals to downsizing families — rather than assuming apartment buyers will trade up within a few years.
See the full Domain report here.
