Hot off the back of last week’s national housing crisis summit, new analysis across Australia’s three biggest cities has found more than 650,000 residential properties with the potential to build a granny flat.
Advocates say it could help ease pressure from historic low vacancy rates of less than 1 per cent, which have left people scrambling for affordable rentals.
The analysis, by town planning research analysts Archistar, lender Blackfort and property data group CoreLogic, concluded there was an “untapped potential to boost housing supply”.
The report can be used interactively by homeowners to identify if their property had the correct conditions for a granny flat by assessing land size, zoning, existing structures and compliance requirements.
CoreLogic research director Tim Lawless said he was “surprised” by just how many properties already had the right zoning and town planning codes, and were close to public transport.
“The results highlight significant untapped development potential which could go some way toward fast tracking a partial remedy to the housing shortage in the country’s largest cities,” Mr Lawless said.
“Forecasts indicate the national housing market is likely to be undersupplied to the tune of 106,300 dwellings over the next five years.”
The federal government has a target to build 1.2 million homes in that time.
“So this is a quick fix option, I would not say a silver bullet by any means but it goes a long way towards addressing the under-supply with some immediacy,” Mr Lawless said.
“For policy makers and government, granny flats present an immediate and cost-effective opportunity to deliver much needed housing supply.”
“For homeowners, the addition of a second self-contained dwelling provides an opportunity to provide rental housing or additional accommodation for family members, while at the same time, increasing the value of their property and potentially attaining additional rental income.”
Mr Lawless said nationally there could be more than a million homes ideal for granny flats or second affordable accommodation.
Maureen Nash lives pays $350 a week for a converted garage she calls a “barn studio flat” on an acreage block in outer Brisbane.
A lifelong renter, the 64-year-old has moved five times in the last decade.
The former community worker said she would love to move or even buy a granny flat, with a separate bedroom and living area.
She said she is grateful to have found somewhere to live for now, but fears she’ll be on the hunt again soon.
“I get nervous and was thinking maybe I need van to live in, or house sit, but at the end of the day I like to come home,” Ms Nash said.
“I want a permanent dwelling, a roof over my head.”
She said she is grateful to have found somewhere to live for now, but fears she’ll be on the hunt again soon.
“I get nervous and was thinking maybe I need van to live in, or house sit, but at the end of the day I like to come home,” Ms Nash said.
“I want a permanent dwelling, a roof over my head.”
Across Sydney’s council regions, the Central Coast has the most granny flat development opportunities with 17.2 per cent of all potential sites. The Northern Beaches, Hornsby, Blacktown and Ku-ring-gai round out the top five regions.
“Sydney’s household formation is forecast to outpace supply from 2025, with the most significant undersupply expected through 2025 and persist up until 2026 at —15,900 dwellings,” Mr Lawless said.
CoreLogic figures showed an extra two bedrooms and an additional bathroom could add around 32 per cent to the value of an existing dwelling.
For a house worth $500,000, the addition of a granny flat has the potential to add approximately $160,000 to the value of the property.
Building costs would start at about $100,000.
The Queensland government has made it easier to rent out an existing granny flat.
(ABC)
