Demographer and co-founder of The Demographics Group Simon Kuestenmacher said he believed more needed to be done to develop larger family-friendly apartments in Melbourne’s inner city.

“I think from a developer perspective if you build a big tower you make more money as one or two bedroom apartments, everything you put online sells,” he said.

Kuestenmacher said millennials were the “procrastination generation” who had delayed relationships and families to live in inner-city suburbs across Australia.

“All of a sudden millennials are having 1.7 kids and need a zoom room,” he said.

“So they are now seeking family friendly housing of three to four bedroom dwellings.

“When it comes to property everybody needs to make compromises, but one thing that people don’t want to compromise on is the number of bedrooms.

“They will go out to the suburban fringe … they’re not going to stay in the inner suburbs because there’s no housing available.”

Kuestenmacher said we needed to develop large European-style family-friendly apartments that normalised families living in four or five-bedroom apartments in inner-city suburbs.

He said the tyranny of distance meant many families had long commutes into the CBD. Kuestenmacher said he believed there was a market for building stacked townhouses and in doing so developers could help to regenerate Melbourne’s lockdown-ravaged inner-city and boost the diversity of its social landscape.

University of Queensland Professor of Urban and Regional Planning Neil Sipe said Australian Bureau of Statistics Census data indicated families with children moved to the suburbs, while young adults, singles and childless couples moved to inner-city suburbs.

One-third of Melbourne’s inner-city residents were aged between 25 and 34 in 2016.

“Despite their smaller housing sizes, the inner cities offer more convenience and accessibility to work, study and recreation. But they’re failing to meet the needs of families in terms of space, amenities and affordability,” Sipe said.

“Australian planners must find ways to facilitate a shift toward more compact living to create more diverse neighbourhoods, bring people closer to their jobs, and give families more flexibility.

“Future policies should integrate people’s non-negotiable needs and wants, including a desire for ample space, privacy, quietness and liveability.

“Developers should be required to offer mid-rise buildings with affordable and sound-proofed three or four-bedroom units. Inner-city units should include multiple bathrooms, storage rooms and large porches where residents can keep plants and pets.”