Multi-Generational Living: The Rise of Modern Granny Flats

22 Oct 2025

Australia is experiencing a quiet revolution in how families live. As the cost of housing rises and generations look to stay closer together, multi-generational living is becoming more common and more appealing.

No longer just simple backyard shelters, today’s granny flats in Perth are fully self-contained homes designed with both lifestyle and long-term value in mind.

Why Multi-Generational Living Is on the Rise in Australia

Across Australia, more families are choosing to live together. In places like Perth, multi-generational living offers a smart, meaningful solution:

Changing Family Dynamics

Australian families are changing. One in five Australians now lives in a multi-generational home, and that number is set to grow by 60% by 2046.

Older parents are living longer and prefer to stay in their homes. Adult children remain at home due to rising housing costs. Blended families also need more flexible living arrangements. Granny flats offer privacy while keeping relatives close. They support daily care without the need for aged care facilities.

Economic Factors

Living costs are rising fast. In Perth, property prices jumped over 24.2% in the last year, and rents continue to climb. Many families, especially younger or single parents, are struggling to keep up.

Granny flats offer a more affordable option. Building one costs less than buying or long-term renting. Families use them to earn rental income, set up home offices, or care for ageing relatives. This setup cuts aged care costs and helps older Australians stay in familiar surroundings, close to loved ones.

Government Support

Since April 2024, WA homeowners can add a granny flat to any residential block, no matter the size. Homeowners don’t need planning approval for flats under 70m² that meet setback, access, and open space rules. Relaxed parking rules add even more flexibility for families.

Homeowners must still obtain a building permit to meet safety standards. They can now rent granny flats to non-family members, easing pressure on aged care and the rental market. The government introduced these changes to support more diverse, adaptable housing across Perth and beyond.

Learn more: Can I Put a Granny Flat on My Property? Everything You Need to Know.

Modern Granny Flat Design Trends for Multi-Generational Living

At Addstyle, we approach every granny flat as a stylish, stand-alone home designed to complement the overall property and bring comfort, longevity, and lifestyle.

1. Dual-Access Designs

Separate entries preserve privacy, while thoughtful layout planning maintains a sense of connection. Shared outdoor areas allow for meals, games, and morning coffees together.

2. Open-Plan Layouts with Zoning

Compact doesn’t mean cramped. Clever zoning allows for spacious kitchens, lounge areas, and designated sleeping zones. Multipurpose spaces adapt to changing needs.

3. Fully Equipped Kitchens and Bathrooms

Each granny flat is self-contained, featuring modern kitchens and accessible bathrooms. Features like walk-in showers, soft-close cabinetry, and integrated appliances elevate daily living.

4. Seamless Indoor-Outdoor Integration

Alfresco areas, BBQ zones, and garden pockets extend the living area outdoors, perfect for Perth’s mild climate and casual lifestyle.

5. Sustainable Design Features

Energy-efficient insulation, solar panels, and water-saving appliances reduce environmental impact and lower long-term utility costs.

Benefits of Designing for Privacy and Togetherness

Multi-generational living requires a delicate balance. The goal is to feel connected without feeling crowded:

  • Separate entrances: A private entry allows occupants to come and go without disrupting the main household’s rhythm, which is essential for independence.
  • Zoned landscaping: Thoughtful garden design can define boundaries without building walls. Use hedges, pathways, or pergolas to create separate outdoor zones.
  • Dual-use shared spaces: Fire pits, veggie gardens, and outdoor kitchens become spaces for spontaneous connection.

Financial and Investment Advantages of Building a Granny Flat

Granny flats meet family needs and double as smart long-term investments. A well-planned design increases property value and appeals to buyers who want flexible living options. More Australians now look for homes that can adapt over time.

In Perth’s tight rental market, granny flats offer a steady income stream. You can lease them out long-term or use them for short-stay accommodation. These spaces also evolve with your household. What starts as housing for an ageing parent can become a teen retreat, guest room, or home office.

Renting out your granny flat may also unlock tax deductions. You could claim depreciation on the building, fittings, and maintenance. These deductions reduce your taxable income and help you recover some construction costs faster. Speak with a tax adviser to make sure you claim everything you’re entitled to.

Thinking about building? Use our budget estimator, and we’ll get in touch within one business day.

Why Choose Addstyle Master Builders for Your Granny Flat Project

Addstyle leads the way in granny flat builders in Perth, backed by over 35 years of award-winning experience. We design fully customised granny flats that suit your lifestyle, block, and future plans. Every space we build is functional, stylish, and made to last.

At Addstyle, we design granny flats that are not only functional and stylish but also integrated seamlessly with the existing residence. Rather than appearing as a house with a granny flat added on, our designs create the impression of a larger, unified home. This considered approach enhances both visual appeal and market value. In contrast, a demountable or transportable-style structure may cheapen the look of the property and compromise its long-term capital growth. A tailored, architecturally sympathetic granny flat is a sound investment, one that elevates your property and delivers a stronger return.

From the first sketch to the final build, we manage everything from design to council approvals, project management, and premium finishes. Whether it’s for family, rental income, or resale, your granny flat will add comfort and real value.

Explore our expertise: Addstyle Granny Flats Perth

Smart, Stylish, and Built for Life

As more families seek smart, supportive ways to live under one roof, the modern granny flat has emerged as the perfect solution. It offers connection, independence, and long-term flexibility, all wrapped in a stylish, future-ready design.

Choose a connection without compromise. Addstyle designs luxury granny flats Perth residents love for their independence, comfort, and lasting value. Contact us today, and let us help you design a home that reflects love, legacy, and lasting value.

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