Dwelling Type is an important determinant of Nillumbik Shire's residential role and function. A greater concentration of higher density dwellings is likely to attract more young adults and smaller households, often renting. Larger, detached or separate dwellings are more likely to attract families and prospective families. The residential built form often reflects market opportunities or planning policy, such as building denser forms of housing around public transport nodes or employment centres.

For low income households, dwelling types may reflect those types of housing which are more affordable, or are available as social housing. If low incomes are related to retirees, they may indicate the type of housing preferred by retirees, or those dwellings in which they have aged in place.

Dwelling Type statistics should be viewed in conjunction with Household Type, Housing Tenure and Age Structure for a more complete picture of the housing market for low income households in Nillumbik Shire.