Cramped from the frame up: tiny setbacks turning into touching walls
Every day on a Melbourne build site, tradie Judd Johnston sees it, a new housing trend Australians might not realise they’re living: homes built right up to each other. Once the frame is up, there’s often only enough space for brick and cladding. Judd says he’s witnessed several where neighbouring houses are millimetres apart.
“We’re seeing it a lot more compared to back in the day,” he told Yahoo News. “By the time it’s finished, I’ve seen a lot of them literally touching.”
Why builders need to sit up and take notice
Block sizes down, land cost up
Recent ABS statistics show that average lot sizes across Australia’s capital cities dropped by about 13 percent, from roughly 496 sqm in 2012 to 432 sqm in 2021.
Meanwhile, average floor areas barely budged, falling by only around 1 percent in the same period.
The result? Smaller front and back yards, minimal side clearances, yet mostly unchanged internal living space.
Councils letting it happen
In NSW the Housing Code under the Codes SEPP permits side setbacks of zero metres, particularly for garages, if block width is narrow (for instance 6 m to 7 m wide). WA, QLD and other states allow comparable flexibility through their deemed‑to‑comply R‑Codes planning rules.
Zero lot boundary homes maximise developer yield, but they leave little breathing room between dwellings, making tradespeople work with centimetres, not metres.
Tradie on the tools: more pressure, less space
Judd’s concern isn’t just aesthetic. Limited setback access can slow down dieback treatments, window fit outs, roof access or scaffolding. “On these tight builds, you’ve got to plan every move. You can’t just swing in with a scaffold or skip bins,” he explains.
He also notes that clients increasingly expect larger internal areas but won’t, or can’t, pay extra for land. “It’s all about profit per square metre of site,” he says. Builders and subcontractors get squeezed as site conditions become more cramped.
Health and neighbourhood downsides
Urban planning experts have voiced concerns. A viral photo of new builds in The Ponds, Sydney, showed homes separated by about 900 mm or less, with critics warning about reduced green space, limited shade trees, and amplified urban heat island effects.
In Melbourne, typical block sizes in growth areas have shrunk from ~495 sqm in 2009 to closer to 350 sqm by late 2024. Experts argue intense lot coverage and little landscape lead to less livable urban environments.
What builders need to know
Check your local rules
Every council sets its own setback requirements. NSW codes allow 0m side setbacks for narrow blocks if garages are sited appropriately. Other states follow QLD’s DQD or WA’s R‑Codes with flexible side and rear limits depending on lot width and density coding.
Plan for logistics on zero‑lot sites
Tradies must think ahead: materials delivery, waste removal, scaffold or crane placement—all get constrained on tight boundary builds. Consider alternate access points or staged construction planning.
Communicate value to clients
Clients usually want internal living space. Help them weigh up the trade‑offs: tight external space vs. functionality in yard, concerns about privacy, access, future maintenance.
A better way forward: healthy homes don’t have to be huge
Not every builder is convinced that bigger interiors and tighter boundaries are the answer.
Duayne Pearce, builder and mentor, has long championed healthier homes—not just in materials, but in lifestyle. “A healthy home isn’t just about air tightness or insulation. It’s about how you live,” he told The Good Builder podcast.
He warns that many new estates prioritise profit and proximity over wellbeing.
“People talk about affordability, but no one talks about expectations,” Duayne said. “You don’t need a house that takes up the whole block. You need one that lets you walk on grass, open a window, breathe fresh air.”
Pearce believes homes should make people feel like they’re on holidays, not just provide shelter. And he’s not alone. Builders looking to prioritise space, light and nature might need to push back against the minimum standards and ask: is this the kind of community we want to build?
Settlements and regulation at a glance
| State/Territory | Example setback rule | Notes |
| NSW | Garage may be built to side boundary if block is 6–7 m wide, other boundaries often 900 mm | Housing Code allows 0 m where complying design applies |
| QLD | Front setbacks ~6 m, side/rear depend on Dwelling on lots 450 sqm and under standards | Access and ventilation requirements still apply |
| WA | Deemed‑to‑comply setbacks calibrated by R‑Code density codes | Local councils may tweak if complementary changes made |
Builder takeaway
If you’re working in growth suburbs, expect more zero‑lot developments and tighter setbacks. That means less space, more planning and heightened responsibility for how trades operate. It’s not just building to code—it’s building for a liveable future.
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