Melbourne, the vibrant heart of Victoria, Australia, is not only renowned for its culture, arts, and bustling city life, but also for its thriving real estate market. As families and homeowners seek to optimize their living spaces, the home extension market in Melbourne has seen remarkable growth from 2022 to 2023. With an increasing number of homeowners choosing to renovate and extend their properties, several suburbs have emerged as hotspots for this trend.

The Melbourne Home Extension Boom

In the dynamic world of real estate, home extensions have gained prominence as an innovative and cost-effective way to enhance living spaces, add value to properties, and accommodate changing lifestyle needs. Recent statistics reveal that the home extension market in Melbourne has experienced a significant upswing, with a year-on-year increase of approximately 15% from 2022 to 2023.

Melbourne’s Busiest Home Extension Suburbs

Richmond: This inner suburb has consistently held a prime spot in the home extension market. Known for its historical charm and proximity to the CBD, Richmond has seen a surge in homeowners investing in extensions and renovations. The seamless blend of Victorian-era architecture with modern designs has led to an increased demand for home extension builders in the area.

Camberwell: Situated in the eastern suburbs, Camberwell boasts tree-lined streets and a strong sense of community. With an uptick in homeowners choosing to stay and upgrade their homes rather than relocate, the demand for home renovation builders in Camberwell has been on the rise. The suburb’s accessibility and well-regarded schools also contribute to its popularity.

Prahran: Known for its trendy atmosphere and lively entertainment options, Prahran has become a hotspot for young families and professionals. As properties in this suburb often have limited outdoor space, homeowners are turning to home extensions to maximize their living areas. This trend has led to a surge in demand for Melbourne home extension builders who can seamlessly integrate modern designs into the existing structures.

Elwood: Nestled along the coastline, Elwood offers a laid-back beachy lifestyle coupled with proximity to the city. The limited availability of land has led homeowners to consider extending their properties to capitalize on the desirable location. This has spurred a growth in the market for home renovation builders in Melbourne who specialize in coastal aesthetics and designs.

Essendon: With a mix of period homes and contemporary architecture, Essendon has seen a rise in property owners opting for extensions. This suburb’s rich history and sense of community have motivated residents to preserve the original character of their homes while incorporating modern functionalities through renovations.

Factors Driving the Trend

Several factors have contributed to the surge in the home extension market in Melbourne:

Cost-Effectiveness: Home extensions often provide a more cost-effective solution compared to purchasing a new property. Homeowners can invest in expanding their existing homes to cater to their evolving needs without incurring the costs of moving and buying a new property.

Property Value: Well-executed extensions can significantly increase the value of a property. As the real estate market remains competitive, homeowners are looking for ways to make their properties stand out and attract potential buyers.

Personalization: Home extensions allow homeowners to personalize their living spaces according to their preferences. Whether it’s creating a spacious open-plan living area, adding an extra bedroom, or constructing a home office, extensions offer the flexibility to design a space that aligns with individual lifestyle needs.


Melbourne’s home extension market has experienced substantial growth from 2022 to 2023, with numerous suburbs emerging as renovation and extension hotspots. Richmond, Camberwell, Prahran, Elwood, and Essendon are just a few examples of suburbs where homeowners are investing in home extensions to enhance their living spaces. The trend is driven by factors such as cost-effectiveness, increased property value, and the desire for personalized living spaces. As Melbourne’s real estate landscape continues to evolve, the home extension market is expected to remain a prominent and thriving aspect of the city’s property scene. If you’re considering transforming your home to meet your changing needs, exploring the world of home extensions could be the perfect solution.

Thinking of extending your home? Duncan Thompson Extensions are here to help you transform your existing home and increase its value. Get in touch with us by calling 03 9836 8655 or enquire online now.


Disclaimer: The statistics and information presented in this article are based on available data up to September 2021. For the most accurate and up-to-date information, it’s recommended to consult recent sources and market reports.