In five years the national housing market is expected to be short 106,300 dwellings. The addition of granny flats across three capital cities could ease supply deficit. Sydney has the largest opportunities for granny flat developments.
The housing crisis in Australia continues unabated, with issues such as land scarcity and interest rate rises contributing to the scale of the problem.
Other impediments to homeownership, such as home prices far outstripping wage growth, have further compounded the crisis.
Moreover, the national vacancy rate has dropped to a record low of 1.1%.
CoreLogic research director, Tim Lawless, said the National Housing Finance and Investment Corporation (NHIC), forecasts the national housing market is likely to be undersupplied to the tune of 106,300 dwellings over the next five years.
However, the addition of granny flat units to dwellings across Australia’s three largest capital cities could go some way toward easing the housing shortage.
“For policy makers and government, granny flats present an immediate and cost-effective opportunity to deliver much needed housing supply within existing town planning guidelines.”
Tim Lawless, CoreLogic research director
“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.”
Archistar co-founder, Dr Benjamin Coorey, said granny flats present a cost-effective opportunity to boost housing supply for growing capital populations close to existing infrastructure such as railways, bus routes, and major road networks for state and local governments.
“While building regulations for secondary dwellings differ state to state, this