When it comes to property, Australians are starting to choose location over size, according to new Grattan Institute research.

The study, “What Matters Most? Housing preferences across the Australian population,” asked more than 700 city residents to state what was important to them when they thought of moving house. Some responses ran counter to common assumptions such as having a garden or being close to work, which were not in the top 15 ‘must-haves’ of most people.

A whole series of other characteristics – of the house and its surrounding neighbourhood – mattered more.

Across the board, the survey found that the number of bedrooms in a home ranks as the highest concern across all demographics, followed by safety for occupants, proximity to family and friends and the number of living spaces in the home.

Priorities differ by age and type of household, and over time an aging population coupled with the decreasing size of households is set to produce significant shifts in the mix of housing that people want.

Young families still focus on living in a large detached house. Older and single-person households are much more likely to think that the characteristics of where they live are more important.