If it isn’t already evident, populations around the world are ageing, and Australia is no exception. Over the past decade, granny flats in Melbourne have grown in popularity, driven in part by the rising cost of living, which has made it increasingly difficult for adult children to afford a place of their own.
As a result, granny flats offer a practical solution, allowing families to support independence while staying connected on the same property. This combination of social and economic factors has driven sustained demand for this style of living.
With over 30 years of experience and more than 10,000 homes built, Todd Devine Homes has seen this shift firsthand, helping families create functional, private spaces that adapt to changing household needs.
Contact us today to explore your options. We’ll help you find the best fit for your family’s needs.
For Melbourne homeowners, granny flats are rising in popularity. They respond directly to three key local pressures: an ageing population, rising housing costs, and strong multigenerational living traditions across many of the city’s largest communities.
What was once considered a “nice-to-have” is now a practical and affordable solution, helping families create private, self-contained spaces for ageing parents or adult children while remaining connected on the same property.
ABS-aligned projections show Australia’s 65+ population will grow from 4.31 million in 2021 to around 6.66 million by 2041, with a significant share concentrated in Melbourne’s expanding suburban areas.
As of 2025, Melbourne’s median house price sits around the one million mark, contributing to a surge in adult children staying in or returning to family homes.
According to the 2021 Census, nearly 40% of Melbourne residents were born overseas, with large Indian, Chinese, Vietnamese, and Greek communities, groups where multigenerational living is common. This makes granny flats a culturally aligned housing solution.
Seen as a viable solution to the pressures facing modern Melbourne households, granny flats now effectively reshape how families live and manage money across generations.
Granny flats let families keep older parents close while still preserving their independence. It avoids the need for early entry into aged-care facilities. A self-contained unit on the same block provides a natural intermediate step, offering a private kitchen, bathroom, bedroom, and living space that’s just metres away from the main household.
With housing prices skyrocketing, many adult children simply cannot afford to enter the market. However, a granny flat allows parents to effectively subsidise their children’s housing by providing a low-cost home that’s right on the family block, all without the stigma of permanent “couch-surfing”.
A well and thoughtfully designed granny flat can typically rent anywhere from mid-1000s to low-2000s per month, depending on suburb, size, and finish. For many families, this extra stream of income can help offset mortgage and other cost-of-living payments.
Melbourne’s large Vietnamese, Indian, Chinese, and Greek communities frequently favour multigenerational living as a cultural norm, and granny flats offer a compromise between privacy and proximity. Rather than forcing three generations into one cramped house, families can place grandparents or adult children in a separate unit while still sharing meals, childcare, and day-to-day support.
From cosy one-bedroom designs to more spacious two-bedroom options, Todd Devine Homes offers a range of granny flats to suit different needs and sites, including but not limited to:
View our 12-step building process to understand how we take your granny flat from concept to completion.
Rethinking how you live? As family dynamics change, the way we use our homes should evolve too. Granny flats offer a practical and affordable solution for greater lifestyle flexibility and long-term value.
Whether it’s to stay close to family, improve housing affordability, or create an investment opportunity, a granny flat is a smart way to make the most of your space.
With more than 10,000 homes built and over 30 years in the industry, Todd Devine Homes is ready to help you create a solution that works for you.
Explore our granny flat range here.
Contact us today to discover a flexible living arrangement.
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