Rising property prices mean that many buyers have given up on the traditional dream of a house and yard and are buying apartments instead.

Newly-published data from the 2021 Census show that, of Australia’s 11 million dwellings, 16% or 1.7 million are now apartments while 13% are semi-detached or townhouses.

It shows almost one million new apartments have been built since the previous Census in 2016 and that more than 2.5 million Australians now live in apartments.

While affordability and a desire for a low-maintenance lifestyle plays some part in the increased demand, an undersupply of houses is also behind the trend toward apartment living.

That increase in demand should lead to even more apartment development throughout Australia although developers are warning rising construction costs will result in higher prices.

Construction costs throughout Australia have increased by about 20% since the start of the pandemic and developers are also battling against rising fuel prices and staff shortages to deliver projects.