In recent years, granny flats have shifted from a niche housing solution to a mainstream choice for families, retirees, and investors. Rising housing costs, shifting lifestyles, and recent changes in government regulations have made these compact, self-contained homes one of the most practical options in today’s property market.
To explore this trend in depth, ABC Radio Brisbane host Steve Austin spoke with Shane Windsor, General Manager of Hoek Modular Homes, about the surge in demand for granny flats, the challenges people face when building them, and the value they bring to homeowners. Listen here to Steve and Shane’s conversation here, or learn more about what was disucssed below.
How long does it take to build a granny flat: Most granny flats are built in 12 to 20 weeks once approvals are finalised. However, site conditions and council processes can affect the timeline.
Do granny flats add value to a property: Yes. Granny flats increase property value by adding flexible living space and, in many cases, rental potential. Buyers and investors are increasingly seeking properties with secondary dwellings.
How quickly can I get council approval: If your granny flat design complies exactly with council rules, approval can be granted in under a month. Non-compliant designs that require a Development Approval (DA) may take several months.
Can I rent out a granny flat in Queensland: Yes. State government changes now allow granny flats to be rented out independently, making them an attractive option for investors as well as families.
How much does a granny flat cost compared to a new home: On average, a granny flat can cost around one-third of a new home, depending on design and site conditions. This makes them one of the most affordable housing solutions available.
What are the biggest challenges in the process: The most common challenges include navigating council regulations, addressing site-specific overlays (such as flood or bushfire risks), and managing rising construction costs. Working with an experienced builder like Hoek Modular Homes helps reduce these risks.
Granny flats have been around for decades in Australia, often referred to as “secondary dwellings” in council documents. Traditionally, they were small self-contained homes built for elderly relatives, allowing them to live independently while remaining close to family. For many years, they were thought of as a special-case option rather than a mainstream housing solution.
That perception has changed dramatically. Shane explained that demand has “really exploded over the last three or four years — in particular since COVID.” What was once a niche is now a central feature of the housing conversation. Families, retirees, and investors are all looking to granny flats as a way to adapt to economic realities and evolving lifestyles.
The COVID-19 pandemic played a big role in shifting perceptions. Lockdowns, housing shortages, and the need for flexible work-from-home spaces all highlighted the importance of multi-functional housing. Suddenly, the granny flat was no longer just for “granny.” It became a solution for a wide range of modern living needs.
The appeal of granny flats lies in their versatility. A secondary dwelling can function as:
As Shane put it, granny flats have become mainstream. They are no longer a fallback option; they are increasingly the first choice for people looking to stretch their property potential and adapt to rising housing costs.
At the heart of the granny flat trend is not just economics, but people. Families are rediscovering the value of living close to one another, of sharing resources, and of creating spaces that keep loved ones connected.
“You’re seeing families come back together much more often than we have for a long, long time — and it’s a very big privilege to be part of that,” Shane concluded.
Granny flats allow older parents to age in place, young adults to find affordable housing, and families to remain together even as their needs change. They are more than just a building; they are a solution to modern life’s challenges, combining affordability, flexibility, and connection.
The cost of housing is one of the biggest issues facing Australians today. Property prices have surged, and rents have followed suit. For young people in particular, the dream of owning a home has become increasingly difficult to achieve.
Shane explained that this is the primary driver behind the granny flat boom:
“It’s most definitely the cost of living. People are looking at granny flats as another option over building houses or trying to get deposits together for younger people.”
A granny flat can cost as little as a third of what a full-size home would. This makes it a far more attainable option for those who cannot access traditional housing finance. For families, it also provides a way to support children or relatives without the need to purchase separate properties.
Another noticeable trend is families combining resources to maximise their housing opportunities. Instead of buying two or three separate properties, families are adding secondary dwellings to existing homes.
“Families are consolidating their incomes and looking at property together. You’re seeing families come back together much more often than we have for a long, long time — and it’s a very big privilege to be part of that,” Shane said.
This approach reflects not only economic necessity but also a cultural shift. Multi-generational living was once common in Australia, but it declined as housing became more affordable in the late 20th century. Now, with housing costs at record highs, families are rediscovering the benefits of living closer together, both financially and socially.
One of the most challenging parts of building a granny flat is understanding the regulations. Each council sets its own rules about what is and isn’t allowed. These rules can cover everything from the maximum size of a granny flat to where it can be positioned on a block of land.
Shane noted that this is often where confusion arises:
“Every council within South East Queensland has its own rules, and that’s where it can be complicated. People might hear at a barbecue about a friend’s experience in one area, but for them, it’s completely different.”
This complexity can catch homeowners off guard. A process that seems straightforward in one council area may be far more complicated in another.
Fortunately, working with experienced builders can take the stress out of the process. Hoek Modular Homes has years of experience dealing with councils across South East Queensland. They also work closely with town planners, certifiers, and consultants who understand the local rules.
“The key is going to people who know what they’re doing, who’ve got networks of certifiers, town planners, and consultants who can guide you through the process,” Shane explained.
This expertise allows homeowners to avoid unnecessary delays and ensures that their granny flat complies with local regulations from the start.
One of the biggest misconceptions about granny flats is how fast they can be built. Because they are modular, many people assume they can be completed in a matter of weeks. While construction itself can be relatively quick, the full process also includes planning, approvals, and site preparation.
“I think everybody probably thinks it’s going to happen quicker than it actually does. Regulations take time, and in some areas it’s more complicated than others,” Shane said.
Different properties present different challenges. For example:
Each of these factors can extend the timeline. Despite this, once approvals are in place, Hoek Modular Homes can usually deliver a granny flat in 12 to 20 weeks, significantly faster than building a full-size home.
The construction industry has been under pressure for several years, with costs increasing across the board. Initially, this was driven by supply shortages during the pandemic, when the price of materials like steel and timber soared.
More recently however, wages have become the main driver of cost increases. Shane explained:
“Probably the biggest driver of cost increases now is wages. That’s the one that’s kicked in the most. Materials have calmed down a little bit, but wages are still under constant pressure, and unfortunately, that has to be passed on to the bottom line when you’re selling the home.”
Even with rising costs, granny flats remain a cost-effective choice. Compared to the expense of buying a new home or building a larger extension, a granny flat provides an affordable way to add independent living space to an existing property.
For many families, it is the only practical way to create new housing within their budget. For investors, the ability to rent out a granny flat provides a new income stream that can offset costs quickly.
Council approvals are often the part of the process that homeowners worry about most. However, if the design follows council rules exactly, approval can be surprisingly fast.
“If you follow what the council says is okay for a granny flat, you’ll get it through certification in under a month,” Shane explained.
This quick turnaround allows builders to move forward with construction sooner, ensuring projects are completed within realistic timelines.
Delays happen when homeowners try to go beyond what the council allows. For example, most councils do not permit granny flats in the front yard, and larger designs may require a Development Approval (DA).
These processes can extend timelines by several months. However, with proper planning and advice, homeowners can make informed decisions and avoid unnecessary frustrations.
Granny flats don’t just provide practical housing solutions; they also add financial value to a property. While real estate agents are still adjusting to this trend, more buyers are beginning to seek out homes with secondary dwellings.
“Yes, granny flats definitely add value. Real estate agents are still getting on board with it, but clients are asking for them and searching for properties that already have one,” Shane said.
Recent changes in Queensland regulations mean that granny flats can now be rented out independently, rather than being restricted to family use. This has created new opportunities for investors who can now generate income from these dwellings.
“Now that you’re allowed to rent out granny flats, investors are getting into the market as well. It’s about the housing crisis, and it’s adding value by increasing supply and giving people more options,” Shane added.
For both homeowners and investors, this makes granny flats a smart long-term investment.
Granny flats are no longer a secondary option; they’re at the forefront of innovative housing solutions in Queensland. By addressing affordability challenges, supporting family living, and offering investment potential, they have become one of the most practical ways to navigate today’s housing market.
At Hoek Modular Homes, we pride ourselves on helping families and investors make the most of their properties. From council approvals to custom designs and construction, our team provides the expertise and support needed to bring granny flats from idea to reality.
If you’re considering a granny flat, contact our team today to find out how we can help you create a home that fits your needs now and in the future.
