The Biggest Sustainability Blind Spots in Australian Home Design

Meeting compliance standards is one thing. Designing homes that actually perform efficiently in real-world conditions is another.
With the 7-star energy rating now the new minimum under the National Construction Code (NCC), there’s a growing expectation that homes will be comfortable and sustainably built — and cost-effective for the occupants in the long-term. But while a design may tick the boxes on paper, that doesn’t always translate into real-world efficiency.
Outdated construction techniques, incorrect insulation installation, including seal joins, and a lack of consideration for orientation can all lead to homes that underperform, resulting in higher energy bills, uncomfortable indoor temperatures, and avoidable carbon emissions.
A NatHERS star rating doesn’t always tell the whole truth, either: a home in a mild climate may achieve a high rating with minimal effort, while one in a more extreme climate requires advanced techniques to perform the same. Plus, the system scores energy use per square metre, meaning a large, inefficient home can rate similarly to a smaller, more energy-efficient one.
To bridge the gap between compliance and actual efficiency, builders and designers should look beyond minimum requirements and address some of the most overlooked sustainability blind spots in Australian home design.
Here’s what to watch out for.

1. Glazing That Works Against You
Windows and doors are among the biggest factors in a home’s overall energy performance, yet they’re often chosen based on aesthetic factors alone, rather than considering performance. Many Australian houses still feature outdated, thermally inefficient single glazing, which can lead to excessive heat loss in winter and overheating in summer. In fact, poorly insulated windows and doors can account for up to 40% of a home’s heat loss, directly impacting energy consumption and comfort.Switching to double or triple glazing, choosing thermally efficient frames like uPVC frames, and incorporating low-emissivity (Low-E) coatings can greatly improve thermal performance without compromising on design and aesthetics. At Thermotek, our team has extensive local knowledge on the energy standards, considerations for the Australian climate, and how to incorporate high-performance windows into your house design.
2. Losing Energy Through Insufficient Airtightness and Sealing
Insulation alone isn’t enough if a home is leaking air. Even in well-insulated buildings, small gaps around windows, doors, floors, and ventilation points can allow warm and cool air to escape, forcing heating and cooling systems to work harder. It’s also costly: gaps and cracks can increase a yearly energy bill by up to 25%. Even in high-rated homes, poor sealing around doors, windows, and wall penetrations can lead to major performance losses.
To avoid this, airtightness must be carefully planned from the design stage through to framing, insulation, and ventilation systems. Properly installed high-quality seals, meticulous detailing at joints and material junctions, and strategic use of building wraps help create an airtight envelope, stopping leaks before they become a problem. Advances in construction techniques, such as blower door testing and high-performance membranes, make it easier to build airtight homes.

3. Insufficient Ventilation
While sealing a home is essential for energy efficiency, a lack of proper ventilation can create a whole new set of problems. Without adequate airflow, homes can trap excess humidity, leading to condensation, poor air quality, and an increased risk of mould and further health issues for occupants. In the past, Australian homes have relied on passive ventilation, where air changes through windows, gaps, and vents without mechanical help.
Integrating mechanical ventilation systems, like heat recovery ventilation (HRV) systems, and designing for cross-ventilation can help maintain fresh air circulation without compromising energy efficiency.
4. Thermal Bridging is the Invisible Energy Leak
One of the least visible but most impactful blind spots in home design is thermal bridging. This occurs when heat travels through conductive materials like steel, aluminium, and concrete, bypassing insulation and significantly reducing the home’s overall energy efficiency. Thermal bridging can happen when there’s a gap in the insulation layer, such as poorly installed batts, or when structural elements like joists interrupt the insulation continuity. The result is unwanted heat transfer as well as the potential for cold spots, condensation issues, and mould growth.
Continuous insulation, proper installation, and selecting high-performance window and door frames made from materials that are less heat conductive, like uPVC, can help limit thermal bridging.

5. Overlooking Embodied Carbon in Materials
Most sustainability conversations focus on operational energy: how much energy a home consumes once occupied. But embodied carbon, which accounts for the emissions generated during the manufacturing, transport, and construction of materials, is just as critical. Traditional materials like concrete, steel, and aluminium often come with high carbon footprints, and material selection is an increasingly important consideration in sustainable design.
Choosing low-carbon materials, such as recycled timber, hempcrete, and low-carbon bricks can significantly reduce a home’s environmental impact. The durability of materials should also be a priority: Life Cycle Analysis (LCA) is a meaningful way to measure the entire footprint of a material, and how it contributes to the house’s sustainability.
Locally sourced materials and prefabricated construction methods, like standard insulated panels (SIP), can further cut down on transportation emissions and construction waste.
6. Ignoring Future Climate Conditions
Many Australian homes are still being designed based on historical climate data, despite the fact that extreme weather events, rising temperatures, and unpredictable conditions are becoming the norm. Designs that work today may not be resilient enough for the future, especially in areas prone to heatwaves, storms, or bushfires.
To future-proof homes, it’s important to design with higher temperatures and extreme weather events, like floods and strong winds, in mind. Using innovative climate-responsive materials, like recycled steel, clay bricks, or hempcrete, and bushfire-rated windows and doors can help homes be better equipped to withstand a changing climate.
Ready to Design and Build Beyond 7 Stars?
Many small but impactful factors affect a home’s real-world energy performance. Achieving a truly sustainable, energy-efficient result requires extensive planning and a holistic approach to all stages of design and construction.
To help builders and architects design truly sustainable, high-performance homes that exceed 7-star energy efficiency, we’ve put together the Ultimate Sustainable Design Checklist. It’s a practical resource packed with tips to guide you through the construction process, as well as explanations behind the energy rating systems and key principles of sustainable design.
You can download your free copy by filling the form below.