Tackling Western Australia’s Housing Shortage: The Role of Granny Flats.

The housing and rental crisis in Western Australia has been a growing concern for many residents. With property prices soaring and rental vacancies dwindling, finding affordable housing has become a significant challenge. However, recent government regulations and a shift in public perception have positioned granny flats as a viable solution to this pressing issue.

The Potential of Granny Flats

According to a report from The West Australian, our big cities have the capacity to accommodate an additional 655,000 granny flats. This untapped potential could significantly alleviate the housing shortage, providing both homeowners and renters with more options. Furthermore, as the name suggests, granny flats are no longer just for our beloved grandparents. Granny flats are extremely versatile dwellings, and have transformed from the kids’ hangouts, to work-from-home studios, rental properties and more.

Benefits of Granny Flats

For homeowners, the financial incentives of adding a granny flat are hard to ignore. Building a granny flat can yield up to $400 a week in rent, which over time, can significantly offset the initial investment costs, making the additional income a lucrative option for many property owners.


Granny flats are no longer just for grandparents. They can serve as home offices, studios, rental properties, or even spaces for grown children saving for their own homes.

Financial Incentives

For homeowners, granny flats can be a source of additional income. Renting out these spaces can help offset mortgage costs and provide a steady stream of revenue.

Increased Property Value

Adding a well-designed granny flat can boost the overall value of a property, making it more appealing to potential buyers.

Solution to Housing Shortage

As cities grapple with housing shortages, granny flats offer an immediate solution, providing additional living spaces without the need for new land or extensive construction.

Reasons for Building Granny Flats

Housing Extended Family

Whether it’s for elderly parents or grown children, granny flats provide close yet independent living arrangements.

Rental Income

With the potential for steady rental income, many homeowners are seeing granny flats as sound financial investments.

Work-from-Home Spaces

The rise of remote work has increased the demand for dedicated home offices. Granny flats can serve as quiet, separate workspaces.

Property Enhancement

A well-constructed granny flat can enhance a property’s aesthetic appeal, making it more attractive to potential buyers.

Modern and stylish designs

Fox Granny Flats provides high quality construction designed by world class architects in the field. You can now customise one of our 1 bedroom, 2 bedroom or 3 bedroom granny flat stylish and energy efficient designs to your needs.

Government Regulations and the Rental Market

One of the most significant barriers to the proliferation of granny flats in the past was stringent government regulations. However, recent legislative changes have made it easier for homeowners to build and rent out these secondary dwellings. While some states like South Australia and Victoria still have restrictions on renting out granny flats to non-relatives, others, including Western Australia, have become more lenient. This regulatory shift has opened up a new avenue for homeowners to generate rental income, helping them offset mortgage costs in these financially challenging times.

For homeowners in Western Australia considering building a granny flat, it’s essential to be aware of the government regulations. While recent legislative changes have made it easier to build and rent out granny flats, there are specific guidelines to follow:

Renting Out

Western Australian homeowners can rent out their granny flats, offering a solution to the rental crisis and providing an additional income source.

Size Restrictions

There are size limitations on granny flats, ensuring they remain secondary dwellings. Homeowners should consult local council regulations for specific size guidelines.

Pre-Building Requirements

Before constructing a granny flat, homeowners must lodge a development application with the local council. It’s crucial to ensure that the proposed structure complies with all local regulations and standards.

What Do Buyers Want?

With the changing landscape of the property market, potential buyers’ preferences are also evolving. Data from indicates a surge in searches for homes with additional self-contained living spaces, such as granny flats or studios. The term ‘dual living’ saw a 27% increase in searches over the past year, while ‘granny flat’ searches grew by 13%. These figures underscore the growing demand for properties that offer flexibility, additional income potential, and space for extended family.

The Broader Impact

Beyond the immediate financial benefits, the rise of granny flats can have a broader positive impact on the community. Granny flats can provide more affordable housing options for various demographics, including students, travelers, and FIFO workers. Moreover, with the ongoing housing crisis, these dwellings can offer a more immediate solution compared to the longer timelines associated with large-scale housing developments.

As Western Australia grapples with its housing and rental crisis, granny flats emerge as a promising solution to modern housing challenges. With the support of recent government regulations, changing public perceptions, and evident financial benefits, it’s time for more Western Australians to consider granny flats as a viable housing alternative. At Fox Granny Flats, we’re committed to helping our community navigate this new frontier in the property market. Whether you’re considering building a granny flat or just want to learn more, contact our team and they will assist you every step of the way.