Why Australia’s Homes Are Still Failing Us — and What We Can Do About It

I recently had the pleasure of tuning into Good for the Hood’s webinar, Save Money, Live Comfortably – The Sustainable Home Forum.
Australia has some of the poorest-performing homes in the developed world — hot in summer, freezing in winter, leaky, uncomfortable, and expensive to run. And as extreme weather events become more frequent, the performance of our homes is no longer just a comfort issue — it’s a health, wellbeing and resilience issue.
Where sustainability advocate Jo Taranto, talked with our Reimagined Habitat founder Michael Drage and explored why Australian homes perform so poorly, what actually makes a home energy efficient, and how smarter design can dramatically improve both comfort and health.
This article brings together the key insights from that discussion.
🌡️ Why Are Australian Homes So Thermally Inefficient?
As Michael puts it, Australia has a long history of “she’ll be right” building.
For decades, homes were constructed with little regard for insulation, orientation, airtightness or glazing performance. Even today, newly built homes can perform shockingly poorly.
Michael shared an example from Canberra, where he tested brand-new homes and found they were leaking air at 23–26 air changes per hour. To put that simply:
- The entire volume of air inside the home was being replaced every 2–3 minutes.
- That means heating or cooling is essentially leaking straight out of the building.
- The cost to run the home skyrockets, while comfort plummets.
Airtightness standards have only recently been introduced in Australia — and our minimums are still far behind international benchmarks.
🪟 The Two Biggest Performance Issues: Airtightness & Windows
Michael explains that while many factors influence home performance, two stand above the rest:
1. Airtightness
It’s one of the most misunderstood aspects of building science.
Most Australian homes leak so much air that heating or cooling them becomes incredibly inefficient.
- Average existing home: ~20 air changes per hour
- New building code requirement (2023): 10 ACH
- Passive House standard: 0.6 ACH
You don’t need Passive House levels of airtightness to see major improvements — even reducing leakage by half can dramatically improve comfort and reduce running costs.
2. Windows (and glazing performance)
Windows are often the biggest weak spot in a building envelope.
- A typical insulated wall might have an R-value around 2.5
- A standard aluminium double-glazed window can perform as poorly as R 0.2
That’s a 12x difference in insulation performance.
And “double glazing” does not equal good performance. There is a massive range:
- High-performance double glazing can reach U-values around 1.5
- Poor-quality double glazing can be 5.0 (barely better than single glazing)
This is why so many people spend thousands upgrading to “double glazing” that barely improves comfort — a huge waste.
🛠️ Retrofitting vs Rebuilding: Which Is Better?
Many homeowners come to Reimagined Habitat and ask:
“Should we knock down and rebuild, or retrofit what we have?”
Michael’s answer is honest: There is no universal rule.
- Retrofitting preserves embodied carbon and heritage value
- But some homes are so poorly built that fixing them is inefficient or unaffordable
- Others can be dramatically improved with targeted upgrades (air sealing, insulation, windows, shading, ventilation)
Every project needs to be assessed as its own ecosystem — with the goal being to improve comfort, reduce energy use, and extend the life of the building.
💡 Why Energy Upgrades Should Be Seen as an Investment
There’s a common question:
“Will the upgrades pay for themselves?”
Jo joked in the discussion:
“When was the last time someone asked for the payback period on a veranda?”
Upgrades are rarely evaluated at the same standard as lifestyle choices.
But the 2025 Domain Sustainability Report revealed that high-performing homes attract around 10% higher property value on average. In Sydney, that’s a premium of ~$130K.
In other words, comfort upgrades like:
- Better windows
- More insulation
- Airtightness improvements
- Proper ventilation
- Efficient heating/cooling
…aren’t just energy savers — they enhance capital value, rental appeal, and long-term livability.
❤️ The Missing Conversation: Health
One of the most important points Michael raised is that thermal performance is also a health issue.
Living in a home that fluctuates wildly in temperature places your body under stress. It affects:
- Respiratory health
- Cardiovascular stress
- Sleep
- Mental health
- Asthma and allergy symptoms
- Recovery from illness
Michael shared a real and confronting example from someone on his own team — currently unable to find rental housing that doesn’t compromise her health after living in a Passive House.
This is the reality for many people with chronic illness, respiratory conditions, sensory sensitivities, or disabilities. Yet our housing system rarely recognises this connection.
A thermally stable home isn’t a luxury — it’s a health intervention.
🔍 Where Can Homeowners Get Reliable Advice?
With so much confusing or contradictory information around, Michael recommends a few trusted places to start:
A government-backed resource filled with evidence-based information on sustainable design.
2. Accredited Thermal Assessors (ABSA)
Truly independent advice about what upgrades will have the biggest impact.
3. Certified Passive House Designers
Even if you’re not aiming for certification, they understand building science in a way most practitioners do not.
4. Building Designers Association of Australia (BDAA)
Professional designers with training in energy efficiency, regulation, and best practice.
Most importantly:
Don’t make big decisions without modelling or expert guidance.
Windows, insulation, and building envelope changes should always be evaluated through data, not guesswork.
🌞 So Where Should You Start? Solar? Insulation? A Battery?
A common question from listeners was:
“Should I get solar first? A battery? Or should I upgrade the home itself?”
Michael’s answer:
Always start with the building envelope.
- Fix the leaks
- Improve insulation
- Upgrade windows where possible
- Add shading
- Improve ventilation
Once your home holds heat (or coolth) better, solar becomes far more effective.
There’s no point feeding cheap energy into a home that leaks like a sieve.
🏡 Better Homes Are Possible — Today
Australia’s poor-quality housing stock is a massive challenge — but it’s also a massive opportunity.
With the right advice, the right assessment tools, and a better understanding of building science, everyday homeowners can make meaningful improvements that:
- Lower bills
- Improve comfort
- Increase resilience
- Boost property value
- And most importantly — support physical and mental wellbeing
Better homes aren’t out of reach. They simply require better design and better decisions from the start.
I genuinely loved this conversation with Michael and Jo — his clarity, honesty, and passion for building science always remind me why this work matters so deeply. I hope these insights inspire you to look at your home’s performance with fresh eyes and new possibilities.
