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

Insights from a conversation with Jo Taranto and reimagined habitat founder Michael Drage

Why are so many Australian homes freezing in winter, overheating in summer, and expensive to run year-round?

It’s a question more homeowners are starting to ask as energy costs continue rising, heatwaves become more intense, and awareness grows around the relationship between homes, comfort, and health.

Recently, sustainability advocate Jo Taranto spoke with reimagined habitat founder Michael Drage during Good for the Hood’s webinar:

Save Money, Live Comfortably – The Sustainable Home Forum

Their discussion explored why so many Australian homes perform so poorly, what actually makes a home energy efficient, and how better building design can dramatically improve comfort, health, resilience, and long-term liveability.

This article brings together some of the key insights from that conversation.

Why Australian Homes Perform So Poorly

Australia has some of the poorest-performing homes in the developed world.

Many homes across the country still experience:

unstable indoor temperatures
excessive heat gain in summer
cold indoor environments during winter
draughts
condensation
mould
and high energy bills

As Michael explained during the discussion, Australia has a long history of what he describes as:

“she’ll be right” building.

For decades, many homes were constructed with limited consideration given to:

insulation
airtightness
glazing performance
orientation
shading
and overall building envelope performance

Even today, newly constructed homes can still perform surprisingly poorly.

Michael shared an example from Canberra where brand-new homes tested at air leakage rates of:

23–26 air changes per hour

To put this into perspective:
the entire volume of air inside the home was effectively being replaced every 2–3 minutes.

This means:

heating and cooling rapidly escapes
comfort levels drop dramatically
and energy demand increases significantly

Although airtightness standards have recently improved in Australia, our minimum requirements still remain far behind many international benchmarks.

The Airtightness Problem

One of the strongest themes throughout the conversation was the importance of airtightness.

Airtightness is one of the most misunderstood aspects of building science in Australia, yet it plays an enormous role in:

comfort
energy efficiency
thermal stability
and indoor environmental quality

Most Australian homes leak vast amounts of uncontrolled air.

Michael explained:

many existing homes operate around 20 air changes per hour
the 2023 National Construction Code introduced a 10 ACH requirement
while the Passive House standard targets just 0.6 ACH

Importantly, homes do not need to achieve full Passive House certification to benefit from improved airtightness.

Even reducing uncontrolled air leakage by half can:

dramatically improve thermal comfort
reduce energy demand
improve indoor stability
and lower running costs

You can learn more here:
What Is Passivhaus — And Why Do We Love It So Much?

Why Windows Matter So Much

Windows are often one of the weakest parts of the building envelope.

Michael explained that while a reasonably insulated wall might achieve an R-value around 2.5, many standard aluminium double-glazed windows can perform as poorly as:

R 0.2

That represents an enormous difference in thermal performance.

Importantly:

not all double glazing performs equally.

This is one of the biggest misconceptions within the Australian building industry.

High-performance glazing systems can achieve U-values around:

while poor-quality double glazing may still perform around:

barely improving performance over single glazing.

This is why many homeowners spend significant amounts on “double glazing” upgrades that unfortunately deliver very limited comfort improvements.

The quality of:

glazing
frame design
thermal breaks
installation quality
and airtightness detailing

all matter enormously.

Retrofitting vs Rebuilding

A common question many homeowners ask is:

“Should we retrofit our existing home or knock down and rebuild?”

As Michael explained during the conversation:
there is no universal answer.

Every project needs to be assessed individually.

Some homes can be dramatically improved through:

insulation upgrades
air sealing
improved glazing
shading
and ventilation improvements

Others may be so poorly constructed that retrofitting becomes difficult, inefficient, or financially unrealistic.

At the same time, retrofitting can preserve:

embodied carbon
heritage value
neighbourhood character
and existing building fabric

The goal should not simply be demolition or replacement for its own sake.

The real goal is creating homes that:

perform better
remain comfortable
use less energy
and support healthier living over the long term.

Why Better Homes Should Be Seen as an Investment

One of the most interesting parts of the conversation centred around the way energy upgrades are often evaluated differently from other lifestyle investments.

Jo Taranto joked:

“When was the last time someone asked for the payback period on a veranda?”

Yet homeowners are frequently expected to justify:

insulation
glazing upgrades
airtightness improvements
or ventilation systems

purely through direct energy savings.

But healthier, higher-performing homes offer far broader value.

The 2025 Domain Sustainability Report found that high-performing homes attract approximately:

10% higher property values on average.

In Sydney, this represented a premium of roughly:

$130,000.

Features such as:

better insulation
improved windows
airtightness
ventilation
and efficient heating and cooling

can improve:

comfort
energy efficiency
property appeal
rental desirability
resilience
and long-term liveability

not just utility bills.

The Missing Conversation: Health

One of the most important points raised throughout the discussion was that housing performance is also a health issue.

Australians spend around 90% of their lives indoors.

Yet many homes continue to expose occupants to:

unstable temperatures
poor indoor air quality
condensation
mould risks
and ongoing thermal discomfort

Living in homes that constantly fluctuate between hot and cold conditions places stress on the body and can affect:

respiratory health
cardiovascular stress
sleep quality
mental wellbeing
asthma
allergies
and recovery from illness

Michael shared a confronting example from within the reimagined habitat team — someone now struggling to find rental housing that does not negatively impact their health after previously living in a Passive House environment.

This highlights a growing issue for many Australians living with:

asthma
chronic illness
sensory sensitivities
respiratory conditions
and other health challenges

A thermally stable home should not be considered a luxury.

It is increasingly becoming a health intervention.

You can read more here:
Healthy Home Design for a Changing Climate

Where Homeowners Can Get Reliable Advice

With so much conflicting information available online, many homeowners struggle to know where to begin.

During the discussion, Michael recommended several reliable starting points:

1. YourHome.gov.au

A government-supported resource providing evidence-based sustainable design information.

2. Accredited Thermal Assessors (ABSA)

Professionals who can provide independent advice around building performance and upgrade priorities.

3. Certified Passive House Designers

Even for non-certified homes, Passive House designers often have a much deeper understanding of building science and thermal performance.

4. Building Designers Association of Australia (BDAA)

Professional building designers trained in energy efficiency, regulation, and best-practice design principles.

Most importantly:

major upgrade decisions should always be guided by data and modelling rather than guesswork.

Should You Upgrade Solar or the Building First?

One of the questions raised during the webinar was:

“Should homeowners install solar first, or improve the house itself?”

Michael’s answer was clear:

start with the building envelope.

This means focusing first on:

air sealing
insulation
glazing
shading
and ventilation

before investing heavily in energy generation systems.

There is little value generating large amounts of energy if the home itself leaks heating and cooling excessively.

A more efficient building envelope allows:

solar systems
batteries
and heating/cooling systems

to operate far more effectively.

Better Homes Are Possible

Australia’s housing stock faces enormous challenges — but also enormous opportunity.

The good news is that meaningful improvements are absolutely possible.

Through:

better design
improved building science understanding
thoughtful retrofits
and more informed decision-making

homes can become:

healthier
more comfortable
more resilient
and significantly more energy efficient

At reimagined habitat, we believe better homes are not about unnecessary complexity or luxury.

They are about creating homes that genuinely support:

comfort
wellbeing
resilience
and healthier living for the people inside them.

Because ultimately, homes should do far more than simply shelter us from the weather.

They should actively help us live better.

Frequently Asked Questions

Why are Australian homes so cold in winter?

Many Australian homes have poor insulation, high air leakage, weak glazing performance, and inadequate thermal design.

Why do Australian homes overheat in summer?

Large unshaded glazing, poor insulation, inadequate shading, and weak building envelopes contribute to overheating.

What is airtightness?

Airtightness refers to how much uncontrolled air leaks through a building envelope.

Why are windows so important for thermal comfort?

Windows are often one of the weakest thermal elements in a home and can dramatically influence heat loss and heat gain.

What is a healthy home?

A healthy home supports stable temperatures, good indoor air quality, moisture management, comfort, and occupant wellbeing.

Should I retrofit or rebuild?

Every project is different. Some homes can be successfully upgraded, while others may require more substantial intervention.

Tagged podcast, research, sustainable design