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Multi-Generational Living in Australia…the rise of Granny Flats and Studios

Introduction

Australia’s evolving housing trends are embracing a heartwarming and practical solution: multi-generational living. The concept involves two or more generations of a family living on the same property, fostering closer relationships, sharing expenses, and solving the housing affordability crisis. The addition of granny flats and studios has made this lifestyle not only feasible but also highly desirable.

In this post, we’ll explore the benefits of multi-generational living, look into the growing trend of granny flats and studios, and provide insights into designing these spaces for an enjoyable lifestyle.

Granny Flat image by Backyard Grannys

Why Multi-Generational Living is Thriving in Australia

Multi-generational living isn’t new but it has gained significant momentum lately due to several societal and economic factors:

  1. Affordability Crisis
    With Australian housing prices reaching unprecedented levels, multi-generational living reduces the financial burden. By adding a granny flat or studio, families can create independent spaces for elderly parents or young adults without purchasing a separate property.
  2. Ageing Population
    As Australia’s ageing population grows, many families prefer to keep older family members close for emotional support and caregiving while maintaining their independence.
  3. Cultural Influences
    Many cultures in Australia value living with extended family as a tradition, making multi-generational living a natural choice.
  4. Flexibility for Changing Needs
    Adding a granny flat or studio to your property ensures flexibility for changing family dynamics, whether it’s accommodating boomerang kids (those older kids who just won’t leave the nest :)), elderly parents, or even generating rental income.

Studio by Stark Builders

Granny Flats and Studios: The Perfect Solution

Granny flats and studios are self-contained living units typically built on the same property as the primary residence. They provide a balance of independence and proximity, catering to various needs within a multi-generational household.

As an alternative, consider a Tiny Home. Australia has many great Tiny Home companies and they are a very afforable and practical alternative. They can be transported on wheels by road so can easily be removed or re-located, when needed.

Granny Flats: Independence for your Senior Citizens

Granny flats are ideal for ageing parents who value their independence but also appreciate being close to their loved ones. “Cashed up” “baby boomer” parents have also been opting to build a purpose built accessible granny flat to live in and providing the main house for the grown up kids struggling to enter the housing market on their own. 

Key features of Granny flats include:

  • A bedroom, bathroom, and kitchenette.
  • Proximity to the main house for quick assistance if needed.
  • Universal design elements like ramps and wide doorways for accessibility.

Studios: A Haven for Young Adults

Studios cater perfectly to young adults who need privacy but aren’t ready to leave the family nest. These typically include:

  • An open plan living space with a small kitchen.
  • Modern, minimalistic designs appealing to the younger generation.
  • The potential for short-term rental when not in use.

Key Benefits of Adding Granny Flats and Studio

1. Enhanced Family Bonding

Living close strengthens family ties. Grandparents can babysit grandchildren, while younger generations can assist with caregiving duties.

2. Financial Efficiency

  • Shared Expenses: Utility bills and maintenance costs are shared.
  • Rental Income: Unused granny flats or studios can generate rental income, offsetting costs.

3. Increased Property Value

Granny flats and studios are a solid investment, boosting the resale value of your property. Properties with such additions are in high demand. There is no doubt that adding a granny flat adds dollar value to your property.

4. Versatility

Granny flats and studios are not limited to family use. They can serve as a work from home office, creative workspace, Uni student accommodation, Airbnb, long term rentals or even a guest house.

Designing the Perfect Multi-Generational Setup

Creating a harmonious multi-generational living arrangement requires thoughtful design and planning. Here are some good tips:

1. Privacy is Paramount

Each living space should have its own entrance, bathroom, and kitchen facilities to maintain privacy and independence.

2. Optimize Shared Spaces

Design shared areas like gardens or patios to encourage family interaction while still allowing for solitude.

3. Incorporate Sustainable Features

  • Solar panels to reduce energy costs.
  • Water-efficient fixtures to lower bills.
  • Natural lighting and ventilation for energy efficiency.
  • Use of sustainable building materials (think modular) 

* All states of Australia require compulsory energy efficiency ratings (Basix and / or NAthers ratings) on all new builds. 

Accessible 2 bedroom granny flat by Designacube

4. Accessibility is Key

For elderly residents, prioritize accessibility with features like ramps, lever door handles (not round knobs), lowered benchtops, grab bars, sensor lighting to pathways and toilets, non-slip flooring etc.

5. Invest in Quality Insulation

Soundproof walls between units ensure everyone enjoys peace and quiet.

Regulations and Cost

Building Regulations in Australia

Each state and territory in Australia has its own regulations regarding granny flats and studios. Generally:

  • The size of granny flats is capped at 60-90 sqm.
  • Local council approval may be required, depending on your zoning.
  • Complying Development Approval (Private Certifier) or Development Approved by Local Council (takes longer and more costlier).

Estimated Costs

The cost of adding a granny flat or studio varies but generally ranges from $30,000 to $100,000 for Studios and $100,000 to $200,000 for Granny Flats.These prices are a guide only. Prices can vary wildly depending on many factors but not the least being type and quality of building materials used, architectural difficulty, labour availability, reputation of Builder, site conditions (sloping site, rock, access etc.),location,size of the project, inclusions, landscaping etc. Modular or prefab options can reduce this cost while maintaining quality.

Real-Life Inspiration: Australian Families Thriving Together

(three for the price of two)

An unassuming house in south Sydney with an unusual rear add – on may offer a glimpse of the city’s “denser” future and could be the only realistic solution for young people struggling to get into the world’s second most unaffordable property market.

The six-bedroom property on Mill Street in Carlton, which sold last month for $2.13 million, is really a typical three-bedroom 1930s cottage.

Tucked behind the main residence are not one but two separate self-contained dwellings — a two-bedroom granny flat and a one-bedroom studio, each with a bathroom and kitchenette.

“I’ve seen houses being split upstairs and downstairs with a granny flat, but I’ve never seen a house with a studio and a granny flat,” said selling agent Bill Tsounias from McGrath Sans Souci.

How to Get Started

Step 1: Assess Your Needs

Decide whether you need a granny flat, studio, or both based on your family structure.

Step 2: Consult Professionals

Work with architects and builders who specialize in multi-generational designs to ensure functionality and compliance with local laws.

Step 3: Budget Wisely

Factor in costs for construction, landscaping, and utilities to avoid surprises.

Step 4: Embrace the Lifestyle

Prepare for a rewarding experience of closer family ties and shared responsibilities.

Conclusion

The rise of multi-generational living in Australia is more than a trend. It’s a solution to modern housing challenges. By adding a granny flat or studio, families can stay connected, save money, and future-proof their homes.

Whether you’re looking to care for ageing parents, support young adults, or enhance your property’s value, multi-generational living offers endless benefits. Start planning today and embrace the joy of shared living 🙂

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