Life in 2025 is complicated. Fast-emerging technologies, unpredictable global politics, economic challenges and environmental risks are creating unprecedented societal shifts, leading to widespread feelings of vulnerability and uncertainty. Such accelerated change challenges our notions of safety and stability, which in turn impacts what we need from our homes.

In its 2025 Modern Homes Forecast report, James Hardie has researched these global factors that are shifting our perspectives, and identified how they’re driving four key themes within modern home design:

• efficient building solutions to combat rising living expenses
• spaces designed to improve wellbeing
• flexible homes that adapt to changing living norms
• resilient designs that are energy efficient and built to withstand environmental challenges.

To discuss these challenges and themes, James Hardie convened a forum with industry thought-leaders at The Calyx in the Botanical Gardens of Sydney. Hosted by interiors expert Neale Whitaker, the panel included HIA’s chief economist Tim Reardon; prefabAUS founding director Damien Crough; HIA member and director of award-winning company Futureflip, Neil Hipwell; Green Building Council’s Elham Monavari; and interior designer Kate Lawrence.

Efficiency at the forefront

As interest rates and building costs continue to escalate, and the availability of experienced trades diminishes, we need to re-think how we build our homes; find solutions that are both clever and concise, and fit every budget.

Much of the building efficiency narrative revolves around the potential of prefabricated housing, which currently accounts for 8% of the market, and is forecast to reach 15% by 2030. Damien Crough attributes this to the fact that prefabrication balances affordability and building efficiency with other desirable factors such as sustainability, style and quality assurance.

‘When something's built in a factory, there’s the opportunity to have tighter tolerances and for things to be assembled in a much better and higher quality way,’ he says. Damien envisages a future where home builders can leverage economies of scale and transform productivity by using standardised, factory-produced components. 

Another crucial key to unlocking construction efficiency, without compromising quality, is to simplify design, says Neil Hipwell. ‘Architecture doesn't need to be difficult. If you can keep it quite simple, you'll obviously save a lot of money and still have the same size house.’ 

He cites strategies such as loading bathrooms over bathrooms, not loading things on top of windows, and finding ways to reduce labour throughout the build – by using products with a faster install time, for example. ‘For cladding, do something that's pre-primed ready to paint like an Axon. You’re getting it on really quickly, you're getting the scaffold down quicker, and you're closing out the job quicker.’

Wellbeing

With a focus on mental and physical wellbeing, Australians are increasingly seeking nurturing, comforting spaces that provide sanctuary from the stresses of everyday life.

‘Wellness has to be factored into every design,’ says Kate Lawrence. ‘We live in such a fast-paced environment now that your house should be a place you retreat to.’ 

She creates calm environments using biophilic design, introducing plenty of natural light, indoor-outdoor integration, and open-plan living spaces. ‘It makes a massive difference. Homeowners probably don't know why they love being in their home, but it's those reasons why they do.’ 

Natural materials, such as timber, stone and greenery, plus design elements such as curved lines and colour, can transform a home into a ‘happy place’. 

Neil Hipwell adds that consciously selecting materials to enhance acoustic and thermal performance improve everyday comfort and wellbeing. That means specifying insulation, glazing, roofing and cladding materials that suit the home’s location and climate. 

‘If you use products such as Stria and Oblique, you have a good acoustic grading,’ he says. ‘You’re directly changing the way you feel in the house.’

Resilience

Flooding, fire, cyclones and drought are occurring with increasing frequency and intensity. These tangible impacts of climate change are driving an urgent need for housing solutions that both tread lightly on the environment and are resilient enough to withstanding its forces.

Elham Monavari says the Green Building Council’s Green Star program provides a framework to guide these imperatives. ‘It's often the features within the home you don't see – having better insulation, better windows and air tightness – that have a huge impact from an efficiency point of view.’

Applying the GreenStar standards to a new build, she says, results in homes that are more robust, cheaper to run and offer superior liveability.

The banks are also pushing for more resilience, and Elham says the Commonwealth Bank applies a reduced mortgage rate to GreenStar rated homes. This level of corporate endorsement could finally bring sustainable, resilient construction practices into the mainstream – watch this space. 

Flexibility

The origins of the ‘flexibility’ theme can be traced back to COVID. ‘The pandemic saw an enormous shift as people spent more time at home, they invested in their home, and the utility they required out of their home increased significantly,’ says Tim Reardon. Post-pandemic, rising living costs have triggered a resurgence in multi-generational living. 

‘We need so much more from our homes now,’ adds Kate Lawrence. ‘Previously it would be, “I need three bedrooms, two bathrooms”. Nowadays, it’s “I need three bedrooms, two bathrooms, a home office, a study nook for my children and a home gym”. So it's my job as a designer to figure out how you can creatively come up with different ways to encompass the client’s needs,’ Kate says. 

Here, the conversation returns to the possibilities of pre-fab construction, which could allow homes to adapt as their occupants’ needs change over time. ‘When we talk about design, we should be thinking about circular economy getting to net zero,’ Damien says. ‘The best way we can do that is designing and planning it that way for day one. That also gives us flexibility and agility in multi-generational aspects.’

Evolution of eight emerging home styles

As well as delivering insights into the factors shaping our current and future housing needs, the James Hardie Modern Homes Forecast 2025 details the evolution of eight emerging home styles, and how each one encapsulates the four lifestyle themes discussed above. 

Both inspirational and informative, the report aims to help HIA members to deliver homes that meet the ever-evolving needs of today’s home buyers. 

Download the report

Brand promotion: This article was compiled with contributions from James Hardie.

First published on 11 April 2025