Queensland is seeing a sharp rise in granny flats being built and rented as recent legislative changes unlock new housing opportunities. In just three years, the number of granny flats rented statewide has jumped dramatically, reflecting growing demand for flexible and affordable living options amid a tight rental market
The surge follows 2022 reforms that removed restrictions on who can live in secondary dwellings, allowing homeowners to rent them out more freely. Since then, rental bonds for granny flats have increased each quarter consistently, signalling strong uptake from both property owners and tenants.
Builders specialising in granny flats and modular homes report significant growth, with demand accelerating year over year. Faster build times and relatively lower construction costs compared to traditional homes are making granny flats an attractive option for families and investors alike.
Despite this growth, granny flats still account for a very small share of Queensland’s overall rental supply. With vacancy rates hovering around one per cent, industry leaders note that while granny flats help ease pressure, they are only one piece of a much larger housing solution.
Beyond rentals, many families are choosing granny flats to support multigenerational living. Common use cases include housing ageing parents who want to downsize without losing independence, or adult children entering the workforce who are struggling to afford housing.
Looking ahead, industry forecasts suggest demand for granny flats will continue to rise over the next decade, driven by affordability challenges, an ageing population, and ongoing housing shortages. However, planning approvals and council-level regulations remain a key hurdle, often slowing projects despite state-level reforms.
Granny flats may not solve the housing crisis on their own, but their rapid growth highlights how smaller, more flexible housing options are becoming an increasingly important part of Queensland’s housing landscape
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