The concept of third places was first introduced by sociologist Ray Oldenburg in his 1989 book The Great Good Place,  where he described home as our first place, work as our second, and the informal spaces where people gather, socialise and build relationships as our third.

What defines a third place as unique to work or home is that they are generally neutral, accessible and informal. Think your favourite coffee shop, local library, or sports field. These spaces provide opportunities for the community to interact beyond our immediate family, colleagues or existing friendship circles.

As a 2023 UNESCO article explains, “This simple concept reminds us that human connections need nurturing and that community depends on such simple things as a few tables, a friendly host and a willingness to see what happens when we get together face-to-face.”

These places may seem ordinary, but they play an important role in how we connect with others and develop a sense of belonging.

But as we spend more and more of our time online, aided by the emergence of ‘convenience’ apps like Netflix, Uber Eats, Zoom, and social media, are we at risk of losing many of our vital third places?

According to the Australian Institute of Health and Welfare, 40% of Australians reported experiencing loneliness at least some of the time in the previous week in April 2025. The same report also revealed that average life satisfaction among the Australian public was at the same low levels recorded during the COVID-19 pandemic.

Meanwhile, the 2025 ABS General Social Survey found that just 53% of Australians aged 15 and over had weekly face-to-face contact with family or friends outside their household, compared with 68% in 2019.

These figures demonstrate a tension in contemporary life. We have more ways to communicate than ever before, yet opportunities for regular, meaningful face-to-face interaction appear to be under pressure.

Third spaces help to bridge this gap by creating opportunities for what sociologists call weak ties: the casual connections we form with people outside our closest relationships. Weak ties are especially important as they act as local bridges connecting isolated groups and provide opportunities to interact with people outside your immediate bubbles, opening you up to different perspectives, experiences and backgrounds.

This matters for social cohesion, which is especially important in a time when Australians are reporting declining trust and neighbourhood connection. The AIHW’s 2025 social cohesion analysis shows Australia’s national sense-of-belonging index fell from 88 in 2020 to 77 in 2024.

Research also demonstrates that brief, everyday interactions with weak ties  (like a casual chat with a neighbour or person at the dog park) significantly boost daily happiness and a sense of belonging.

Despite their importance, the role of third spaces is changing, as emerging technologies, affordability, and shifting lifestyles reshape both where and how we connect.

Many informal gathering places, including cafés, restaurants and entertainment venues, require spending money and are routinely being cut as Australian households face increasing cost-of-living pressures.

However, there are many third spaces, like public libraries, that continue to provide value without the expectation to spend. According to the Australian Library and Information Association, Australian public libraries recorded more than 160 million physical and online visits in 2024–25, an 8.5% increase from the previous year. A record 434,000 library programs attracted more than 7.2 million attendees, while meeting-room use increased by 24% in a single year.

Rather than disappearing, demand for these accessible community spaces appears to be growing.

Despite their growing popularity, the same report found that inflation-adjusted library expenditure per person had declined by 13% over five years, highlighting the growing pressure and lack of government support for institutions that provide free community access.

Another tension is the changing nature of social participation. The ABS General Social Survey found that participation in social groups declined from 51% in 2019 to 45% in 2025. Formal volunteering also declined from 30% to 23% over the same period.

As Australians struggle with the uncertainty that comes with a cost of living and housing crisis, the data shows that they become less inclined to take up some traditional forms of community participation.

Digital spaces have also been replacing physical ones, with social media platforms, online gaming communities, and digital forums all creating new environments for people to connect, form community around shared interests and exchange ideas.

These online environments can function as digital third spaces, particularly for those who face geographical, physical or social barriers to participation in traditional community settings.

Research into online gaming communities has recognised this potential for decades. A 2006 study published in the Journal of Computer-Mediated Communication
explored how multiplayer online games can replicate many characteristics of traditional third places, including regular interaction, informal conversation and shared social identities.

Where traditional third spaces and digital third spaces differ is around weak ties. Traditional third spaces often bring together people based on geographical proximity while online communities frequently form around common identities, hobbies or beliefs. Both can foster belonging, but they create different types of social relationships.

The distinction matters because community is not only about connecting with people who are similar to us. It is also about developing familiarity, trust and understanding across differences.

As many aspects of our lives trend towards convenience, like streaming entertainment, online shopping, digital communication and WFH opportunities, this reduces the practical need to visit physical gathering places.

Our own research work with developers has shown that the creation of third spaces is still top of mind in the infrastructure and building communities, with urban planners recognising community spaces as essential social infrastructure rather than optional amenities. Many are constantly developing creative ways to include green and community spaces in their developments, as strong selling points.

For businesses and brands, there is an opportunity to think beyond transactions and consider how physical environments can encourage people to linger, interact and return.

It is worth considering: as our homes become places for work, entertainment, shopping and social interaction, what are we losing out on in less engagement with third spaces?

Square Holes is a cultural insight studio.

We design mixed method explorations of people and culture beyond the category,  uncovering the patterns, tensions and shifts shaping behaviour to inform strategy, inspire innovation and enable confident decisions. Our studio model brings together the right mix of thinkers, researchers and specialists for each exploration. If you’re navigating change, entering a new market, or seeking deeper understanding of people and culture, let’s start a conversation >