Granny Flats To Solve Crisis

Granny flats could be the solution to Australia’s housing affordability crisis, according to the Housing Industry Association (HIA).

It is calling for a national framework for granny flats and secondary dwellings to help ease housing affordability pressures.

HIA Executive Director of Planning & Development, Sam Heckel, says there is a growing popularity for modular homes including those available through major retailers.

“(That) proves that many Australians want quick, modern and simple ways to add density to their backyards,” he says.

A survey of HIA members says builders expect to construct ten times more granny flats in 2026 than were built in 2022.

Heckel says the only thing stopping this solution from reaching its full potential is the patchwork of inconsistent planning rules between councils and state governments.

“We need a nationally consistent framework that allows secondary dwellings or granny flats up to 90 sq m to bypass lengthy planning queues through planning exemptions,” he says.

“The Federal Government should take the lead by establishing national design standards. By removing the need for costly, bespoke planning processes, we could unlock thousands of homes in established city suburbs and also regional areas.”