Australia’s home design landscape is evolving faster than ever, shaped by shifting lifestyles, climate pressures, and a new wave of digital capability. The James Hardie Modern Homes Forecast 2025, developed with research firm Fiftyfive5, captures this moment of change: charting the rise of efficient, resilient and wellbeing-driven homes, and unveiling Modern Classical as the newest addition to the nation’s top eight modern home styles.
According to the report, global turbulence, from the rapid rise of AI to increasing climate risks and a growing epidemic of loneliness, is driving Australians to seek greater safety, comfort and connection at home. In parallel, local economic and policy forces are reshaping how and where people live. Housing shortages, cost pressures and a return to multi-generational living are now as central to design thinking as aesthetic expression.
“Flexible and resilient homes that serve more people and more purposes, homes designed for every budget, and spaces that inspire creativity, are at the forefront of this vision,” says design expert Neale Whitaker, who partnered with James Hardie to present the 2025 Forecast.
Barn House -
Erskine 230 by Hamlan Homes
Why these shifts are happening
Four “lifestyle themes” define the year ahead: Building Efficiencies, Wellbeing, Flexibility and Resilience. Together, they reflect how Australians are responding to ongoing affordability challenges, lifestyle re-prioritisation, and environmental realities.
Building efficiencies have become essential amid labour shortages and elevated construction costs, with modular and prefabricated housing on the rise as faster, more affordable solutions.
Wellbeing is driving a renewed focus on natural light, acoustics, and biophilic design - homes as havens that support mental and physical health.
Modern Farmhouse -
ALMEDA by BurbankFlexibility reflects the rise of multi-generational and hybrid living, where smaller lots are offset by adaptable layouts, granny flats, and reconfigurable spaces.
Resilience, now a design necessity, encompasses energy efficiency, passive design and materials that withstand heat, moisture and fire , what the report calls “resilient-ready” homes built for Australia’s future climate.
The defining look of modern Australia
Each of the eight styles captured in the report, from Box Modern and Japandi to the newly emerging Modern Classical, translates these themes into design expression. While aesthetics differ, their intent is shared: to balance timeless appeal with practical longevity.
Box Modern -
Serenity by Omnia HomesBox Modern and Modern Heritage homes demonstrate the rise of modularity and adaptive reuse, while Modern Farmhouse and Barn styles channel nostalgia into sustainable simplicity.
Japandi and Modern Coastal continue to lead for their light, nature-connected spaces, and the Modern Classical style reintroduces elegance through curved lines and Mediterranean-inspired textures - a return to permanence amid volatility.
Where to from here
For builders, the Forecast underscores a decisive shift toward smarter, smaller, and more sustainable homes. As James Hardie notes, material innovation will play a key role in this transition, with fibre cement products offering both durability and design flexibility suited to Australia’s conditions.
Modern Coastal -
Merricks by Sherridon HomesFor homeowners, it marks a moment of empowerment: technology and design intelligence are no longer reserved for the high end. With AI tools allowing greater customisation and prefab systems shortening build times, the modern Australian home is becoming more attainable, resilient, and responsive to life’s changes.
Ultimately, the 2025 Modern Homes Forecast points to a future where efficiency, wellbeing, and creativity converge - homes that don’t just shelter, but shape the way Australians live.
Publisher Website: www.homeshelf.com.au