Granny Flats remain a key topic within Australia’s construction and real estate media, despite very minimal changes occurring within the Granny Flat industry since September 2022, when Queensland eased its secondary dwelling renting regulations.
So, what’s keeping Granny Flats in the headlines and what is actually being said about these versatile homes? Within this article, Urban Granny Flat Solutions update you on the latest trends and developments shaping the Granny Flat conversation today.
Secondary Dwelling Building Codes
The many advantages of building a Granny Flat, from enabling multigenerational living and creating downsizing opportunities, to boosting property value and rental income, have been vastly reported within the media since the late 2000s. However, Queensland’s full potential in this space is reportedly still constrained by regulatory red tape and an inconsistent council approval process.
To address this, the construction industry is calling for a streamlined, state-wide secondary dwelling building code. This would simplify and speed up approvals, ultimately making Granny Flats more affordable to build. Currently, approval regulations vary by local government, adding time and cost for homeowners. The proposed statewide code aims to standardise these rules across Queensland.
As Master Builders Queensland’s General Manager of Policy and Advocacy told the ABC news in a recent article:
“Things become a lot more efficient if you know what the rules of the game are and every single project doesn’t need to be uniquely approved.”
This push for regulatory reform isn’t limited to Queensland. There’s a national effort underway to simplify approval processes. In April 2024, Western Australia updated its building regulations to remove barriers, allowing Granny Flats up to 70 square metres to be built without planning approval, however still requiring building permits to ensure maintenance of essential safety and compliance standards. This means builders can deliver projects faster and homeowners no longer face lengthy council processes. South Australia has also seen a surge in Granny Flat popularity since implementing similar reforms, highlighting potential benefits for Queensland if it were to follow suit.
Granny Flats Tackle the Housing Shortage
Australia’s housing supply continues to lag behind demand. New builds are falling short of government targets, with Queensland projected to deliver 96,000 fewer homes than needed by 2029 under the National Housing Accord.
Master Builders Queensland CEO, Paul Bidwell, noted within an article by realestate.com that while the state government has made progress in easing regulatory barriers within the construction industry, this hasn’t yet translated into enough new homes built.
With traditional homes increasingly out of reach for many Australians, Granny Flats have emerged as a practical solution, both for homeowners seeking extra income and for renters looking for more affordable living options.
Recent real estate search term data shows a dramatic spike in interest, with searches for Granny Flats increasing by 52% across Australia and dual living searches up by 28%. South Australia, in particular, saw a 114% increase following its planning reforms.
According to a Brisbane Times article, Brisbane needs an estimated 4,000 to 8,000 more rental properties to meet demand, yet vacancy rates remain critically low at just 0.9% (a balanced rental market typically sits between 2% and 3%). Furthermore, the cost advantage once held by units is shrinking, with the rental price gap between houses and units narrowing to just $30 a week, as well as unit rents rising at even faster rates than housing rents.
As a result, Granny Flats are now viewed as a win-win solution: providing additional living space for families or tenants and delivering an extra income stream for homeowners.
Smaller Footprints, Smarter Designs
As urban land availability tightens, especially in well-connected areas near schools, businesses, and transport hubs, building new homes becomes more challenging. Granny Flats have long been celebrated for making clever use of small spaces, but recent media trends show that even these dwellings are getting a downsizing makeover.
Designers are placing even greater emphasis on space optimisation, smart storage solutions, and functional layouts to ensure comfort and liveability in increasingly compact Granny Flats.
A New Generation Embracing Granny Flat Living
Traditionally, Granny Flats were seen as ideal for older Australians seeking to downsize without compromising comfort. Today, however, Gen Z and Millennials are emerging as a significant driver of demand.
Facing record-high rental prices and barriers to home ownership, younger Australians see Granny Flats as a practical solution, whether renting one as an affordable home, or building one to create rental income that helps cover their mortgage.
Many young homeowners are adding a Granny Flat to their parents’ property or their own backyard, then renting out the main house while living comfortably in the smaller dwelling. Many are pleasantly surprised by how spacious and functional a modern Granny Flat can be.
Urban Granny Flat Solutions’ Final Thoughts
From proposed code reforms and surging real estate search term trends to shifting demographics and innovative designs, Granny Flats continue to stand out as a smart, flexible answer to some of Australia’s biggest housing challenges.
At Urban Granny Flat Solutions, we know Granny Flats inside and out, from navigating approvals to designing beautiful, space-optimised homes tailored to your needs. Our experienced team and dedicated architect take care of every step, streamlining the process so you can relax and look forward to enjoying your new Granny Flat sooner. Trust us to turn your vision into reality and help you unlock all the benefits this versatile addition can offer.
