Australian urban fabric has historically been characterised by low-density development resulting in urban sprawl. Increasingly the impact of this low-density urban sprawl on native vegetation, infrastructure costs, lack of housing variety, increased water and air pollution and the impact on transport use have led to policies aimed at encouraging urban consolidation. Consolidation of the urban fabric is also seen as a means to reduce energy consumption and thus greenhouse gas emissions. The relationship between residential density and transport energy use is well researched, but the relationship between housing density and non-transport based energy, such as buildings, is not. This paper looks at existing research and the need for further research to inform planning policies and the design of individual buildings.