There’s a granny flat frenzy sweeping the nation. Following recent regulation changes and mounting pressure from the housing affordability crisis, more Australians are exploring granny flats or secondary dwellings as practical, flexible, and affordable housing solutions.
In fact, according to Domain’s latest data, “granny flat” was one of the top 10 most-searched keywords across Australia — proof that small homes are making a big impact.
The appeal is clear:
✅ No need to subdivide
✅ No lengthy town planning process
✅ Lower build costs
For many homeowners, a granny flat offers an affordable entry point into property investment or a chance to support multigenerational living without breaking the bank.
It’s an opportunity to create extra living space, generate rental income, or accommodate aging parents — all while adding value to your existing property.
Domain’s report reveals a powerful trend: search interest in granny flats is surging across major cities, signalling a nationwide shift in living preferences.
Here’s what the data shows:
This surge suggests Australians are actively seeking affordable housing alternatives and rethinking how to make the most of existing land.
With rising interest rates and record-low housing supply, affordability has become the key driver in buyer behaviour.
Domain also noted a sharp rise in searches for “Dual” or “Dual Living” — up 166% in Melbourne, 82% in Sydney, 60.2% in Perth, and 12.4% in Brisbane.
This trend highlights a shift toward cost-effective living arrangements — such as dual-occupancy homes or secondary dwellings — that allow Australians to live smarter, not larger.
While once considered simple backyard add-ons, granny flats have evolved into stylish, modern homes equipped with everything needed for independent living.
They can serve as:
In a market where flexibility and affordability matter more than ever, it’s easy to see why granny flats are fast becoming an Australian housing staple.
If you’ve been considering adding a secondary dwelling to your property, now might be the perfect time. With simplified regulations, lower construction costs, and strong rental demand, granny flats offer a win-win solution for both lifestyle and investment.
They’re not just about creating space — they’re about creating opportunity.
The “Granny Flat Frenzy” isn’t just a passing fad — it’s a practical response to a shifting housing landscape. Australians are thinking differently about space, family, and financial security. As affordability challenges persist, small homes like granny flats will continue to play a big role in shaping the future of housing across the country.
