Modern Homes Forecast 2026

After years of hyper-individualism, people are returning to community. Diverse identities and shared living needs are reshaping the future home; one that must serve more people, more often, in more ways. Where we once focused on the individual through self-optimisation, self-branding and self-expression, there’s now a growing recognition that community is central to identity, belonging and resilience.

With AI now embedded in daily life, people are seeking technology that enhances rather than dominates the home experience. As 59.9% of global consumers question the authenticity of online content, there’s a growing desire for empathetic, intuitive and trustworthy smart solutions. This signals a shift toward technology that supports, rather than replaces, the human experience.

As more people recognise that planetary health and personal wellbeing are deeply connected, design for both is becoming a central priority. The effects of climate change, from bushfires to flooding and extreme weather, are no longer distant threats but rather lived realities, with the World Economic Forum (2024) projecting more than 14.5 million global deaths from climate-related causes by 2050. Climate-readiness is an important factor to protecting wellbeing.

Housing access is under pressure, reshaping how fairness, equity and agency are defined in the future home. Across Australia, affordability is a growing political fault line, particularly among younger generations, as consumers demand more control over where and how they live. Yet government goals are falling short: Australia is projected to miss its target of 1.2 million new homes by mid-2029 by around 257,000 dwellings.

Rising costs are reshaping demand for homes that deliver more value—smarter, more efficient and flexible. Consumers are moving away from excess, with value now defined by what lasts and what adapts. Flexible, high-quality design, not size, is becoming the new benchmark for modern living.

Emotional uplift is being sought not as a remedy for economic or environmental pressures, but as a way to maintain optimism, agency and psychological resilience amid them. Homes that support creativity, play and personal expression are increasingly valued for the way they contribute to balance and everyday inspiration. This broader cultural shift is also evident in consumer attitudes to brands: globally, 49% of consumers prefer brands that bring a sense of joy.