Aussie property developers are turning to innovative compact builds to help speed up the construction of more affordable housing, especially in NSW, where housing completions rerecently hit an 11-year low and affordability remains the worst in the country.
Rawson Homes are among the first major builders to implement the “Zipper Lot”, a new medium-density design that enables full-sized, family homes on significantly smaller lots, at more attainable price points.
This has coincided with NSW falling behind on the state government’s target to build 377,000 new homes by 2029. About 45,000 new dwellings were completed across NSW in 2025, the lowest in a calendar year since 2014.
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A Zipper Lot home by Rawson Homes. Pictures: Shane Van Laar
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The slow building rates come at a critical time: a typical household can only afford to buy 15 per cent of homes sold across the country, according PropTrack 2025 housing affordability report.
Rethinking a traditional lot layout, a “zipper” build maximises internal space on compact parcels of land – lots as small as 250 sqm without sacrificing amenities families expect.
A “zipper lot” is a residential housing layout where homes are built close together, often with one side of the house built directly on or very close to the property line, creating a “zipper” pattern with the adjacent house’s setbacks.
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An aerial view of an unaffiliated housing estate in Perth where developers are building houses closer together. Source: Facebook
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These homes have been delivered across several master-planned communities in the state.
They include Tegel Park in Leppington, with 202-206sqm homes now sold out, Woodlands in Vineyard, with two stages sold out, and Horizon Hill in Ginninderry.
The pricing for the zipper lot style homes starts from approximately $970,000.
Homeowner Mary Eleanor Caina Hizon purchased and moved into a Zipper Lot home in the Woodlands, Vineyard community over a year ago with her husband and two sons, currently 16 and 23.
The family were previously renting in Schofields and were looking to buy nearby to stay in the Hills area.
Ms Hizon said the design offered an affordable option in the midst of the current cost of living crunch. It meant the family could still afford a house, rather than settling for a unit.
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The Hizon family at their Zipper Lot home in the Woodlands, Vineyard community
“We love the place,” she said. “We wanted to be in an actual house that was a major decision.
“If we really want to be closer to the city, then that would mean probably we need to go back into an apartment.”
They purchased a five-bedroom home, converting the fifth bedroom into an additional living space.
Ms Hizon said they have been particularly pleased with the spacious layout and the recreational green space the property sits alongside.
“We wanted something that’s spacious and we wanted lawn, but not really too big because I don’t have small kids anymore,” she said.
“I just want a little bit of greenery around – but I was more focused on a bigger house itself because that’s where we’re going to be spending most of our time.”
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Ms Hizon said their new home design offered an affordable option in the midst of the current cost of living crunch
Ms Hizon said the home offered the family their own living spaces with rooms to themselves
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According to Ms Hizon, the build has offered the family their own living spaces while optimising their lifestyle needs.
“I was very important that we all have rooms to ourselves,” she said.
“That is pretty much what drove us into this specific one.
“Every month we have guests coming in, that was also a major decision why we chose this because it’s got a big al fresco.
“It’s very affordable and ticks all the boxes and is also in a peaceful neighbourhood.”
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