Home design trends are always evolving and tend to reflect the way we’re choosing to live our lives. 

For the past two decades, open plan has been the much preferred floor plan format, but times are once again changing as more families seek homes with multiple living spaces and separate rooms. 

The trend today is that families still like an open plan kitchen, dining, and living zone, ideally opening out to an alfresco dining and garden area. But they’re also wanting more space, ideally a second living area, such as a rumpus room or media room, and a dedicated office for working from home. 

A larger home with more rooms obviously costs more, but working from home has enabled many families to relocate from expensive inner city areas to the more affordable outskirts, or to regional lifestyle areas, where they can afford to buy a ‘forever home’ that will serve them well for decades. 

Remote working means our homes are now our workplaces, which is driving the desire for separate spaces for working and relaxing. 

In our McGrath Report 2025, Adam Haddow, director of SJB architecture and design, discussed people’s increasing desire for serenity at home. Adam said: “Serenity is also working out how to live closer together, better. This is resulting in the death of the ‘open plan’, towards more defined rooms and spaces, so that you can find space to be quietly alone.”

Another factor driving more demand for larger homes is multi-generational living, which is becoming more common due to higher costs of living and interest rates. 

We’re seeing this in two forms. 

Firstly, young people are staying in the family home longer. Previously, they might have left in their early 20s, but now they’re staying for another four or five years. That’s allowing them to either buy an investment property and rent it out, or just save a bit longer for a deposit to buy their own home. 

Secondly, more young families are living with their parents, not just to share the mortgage but also for care. More grandparents are directly involved in raising their grandkids because child care can be expensive or difficult to find. And as baby boomers age, their Gen X children are stepping up to support their increasingly complex health care needs, so living together makes sense. 

Larger homes with two storeys or separate wings provide the flexibility to set up separate living quarters for multi-gen families. Granny flats have also been great for multi-gen living. That’s been a popular addition that’s really boomed over the last few years. 

While the shape and requirements for a house have changed quite radically in the last few years, I think having that one central open plan kitchen, dining, and living space will remain desirable. 

Modern life is very busy, and open plan enables easy family interaction and multi-tasking for parents. 

Spaciousness also creates a relaxed feeling, which is important given life has become so hectic.  

Australians also really love entertaining at home these days. The popularity of TV shows like My Kitchen Rules and MasterChef reflect Aussies’ interest and enjoyment in preparing great food. An open plan kitchen, dining and living zone facilitates easy entertaining with family and friends. 

The kitchen now sets the tone and style for the entire home. A few decades back, it was tucked away out of sight. Today, it’s the central hub, so you want this room to be the best one in the house. 

In terms of real estate marketing and sales, kitchens sell houses. 

A contemporary kitchen provides the greatest wow factor for buyers. If you’re renovating, your kitchen deserves the most investment because it will deliver the highest uplift in capital value. 

By John McGrath, Chief Executive Officer of McGrath Estate Agents. 

For more information including articles, checklists, guides and more visit McGrath’s Insights Centre.

More Readings from John McGrath: 

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John McGrath – Autumn season strong as market pause approaches 

John McGrath – Has the National Housing Accord made your property more valuable?

John McGrath – A good time to review home insurance policies 

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