Why Every Home Needs a ‘Third Space’ (And How to Design One)

There’s home, there’s work, and then… there’s the in-between. The space that’s not about doing chores or meeting deadlines. A place where you can just be. This, my friends, is what architects are calling the ‘third space’—and if you don’t have one in your home yet, it’s time to rethink your floor plan.

Holocene House

Sunlounges by the pool provide a beautiful, relaxing third space at Holocene House, a carbon-positive sanctuary embraces its coastal and bushland surroundings.

If you’ve ever found yourself aimlessly scrolling your phone in bed because you’re not quite ready to sleep, or lingering at the dining table long after dinner, you probably need a third space. It’s that sweet spot where you can escape the demands of life without actually leaving your house. And no, it’s not the lounge room (too much TV temptation), or the home office (too many reminders of work). It’s something else entirely—somewhere that feels like a mini getaway without stepping outside your front door.

The Paperbark
Fireplaces, Rugs, Lounge Suites, Coffee Tables, Wall Art

A music or hobby room is an ideal third space. When combined with a lounge and a fireplace as it has been in this beautiful home, it creates a versatile place to indulge a hobby or to simply retreat and relax.

So, What Exactly is a Third Space?

The term ‘third space’ has its roots in urban design, originally referring to places outside home (first space) and work (second space) where people gather—think cafes, libraries, or parks. But in a residential setting, the third space is a personal retreat. It’s where you relax, recharge, and get lost in a hobby, a book, or just your own thoughts.

For some, it’s a sun-drenched reading nook. For others, it’s a leafy courtyard, a meditation room, or even a well-designed window seat with a killer view. It could be as simple as a cosy corner that lets you mentally check out from ‘life admin’ mode.

Sunset Villa
Lounge Suites, Bold Colours

A sunken lounge at this home inspired by the golden age of 1970s Hollywood is the perfect place to unwind with a book, have a cheeky nap, sip a martini, or simply 'be', making it a perfect third space.

Why Every Home Needs One

Most modern homes are designed around function—living, eating, working, sleeping. But few intentionally create a space just for being. Without a dedicated third space, we tend to default to using our bedrooms for relaxation, which can mess with sleep quality, or we try to unwind in the living room, which often doubles as a high-traffic family zone.

By carving out a purposefully non-functional space, you give yourself permission to slow down. It’s not about productivity. It’s about pleasure.

The benefits?

  • Less stress and burnout
  • Better mental clarity and creativity
  • A stronger sense of home as a sanctuary
  • A healthier separation between work and life
McPhail House
Passive Solar Design, Renovations, Heritage, Courtyards

An outdoor space with a fireplace as the centrepiece is a lush and relaxing third space at this renovated cottage.

How to Design Your Own Third Space

The beauty of a third space is that it doesn’t have to be big—it just needs to feel intentional. Here’s how to create one:

1. Pick Your Spot

Look for underused areas in your home. An awkward alcove? An unused corner? Even a section of your verandah could work.

2. Make It Feel Different

This space should feel distinct from the rest of your home. Think soft lighting, tactile materials, and a different colour palette to set the mood.

3.Prioritise Comfort

Whether it’s a built-in window seat, a deep armchair, or a hammock, make sure your third space invites you to linger.

4.Minimise Distractions

Keep work and chores out of sight. That means no laptop, no laundry pile, and (if possible) no phone.

Cut Paw Paw Inside Out House by Andrew maynard Architects (via Lunchbox Architect)
Outdoor Areas, Timber Deck, Baths

Third spaces come in all shapes and sizes. This unique third space is a fun and cheeky place to relax - an outdoor bath in your backyard!

5.Bring the Outdoors In

Natural elements like plants, water features, or even just a good view can boost relaxation. If possible, position your third space near a garden, courtyard, or a window with a nice outlook.

6.Give It a Purpose (But Not a To-Do List)

Your third space should serve as an escape zone, whether for reading, meditating, sketching, or simply daydreaming. But don’t put pressure on yourself to use it productively—this isn’t another thing to check off your list.

Pop Up House

A fun, versatile and layered third space invigorates this unique courtyard. Sit on the window seat with a cuppa, lay (or bounce if you're brave) on the net, or just relax and feel the textured brick underfoot, grounding yourself into this delightful third space.

Third Space, Big Impact

Incorporating a third space into your home isn’t just a design trend—it’s a lifestyle upgrade. In a world that glorifies hustle culture and productivity, a home that prioritises rest and restoration is the real luxury.

So, next time you’re tempted to squeeze another ‘functional’ zone into your home, consider creating a space that does nothing but bring you joy. Because let’s be real—your to-do list can wait, but your well-being shouldn’t.


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