Solve the Housing Crisis with a Granny Flat
Granny Flats: A Solution to Sydney's Housing Crisis
New South Wales is in the midst of a housing crisis, with vacancy rates dropping to less than 1 percent, leaving many struggling to find affordable rentals. However, there's a glimmer of hope on the horizon, particularly on Sydney's Northern Beaches. A recent analysis by Archistar, Blackfort, and CoreLogic has uncovered a potential solution – granny flats.
“Since granny flat developments leverage existing lot areas and require no changes to town planning regulation, they offer an immediate opportunity to address housing shortages and affordability pressures expected in the coming five years for both buyers and renters.”
Untapped Housing Potential
This analysis identified more than 650,000 residential properties across Australia's major cities, including Sydney, Melbourne, and Brisbane, as prime candidates for granny flat development. Across Sydney's council regions, the Central Coast has the most granny flat development opportunities with 17.2 per cent of all potential sites. The Northern Beaches, Hornsby, Blacktown and Ku-ring-gai round out the top five regions.
These properties already possess the right zoning, adhere to town planning codes, and are conveniently located near public transport. In essence, they represent an "untapped potential to boost housing supply."
Those figures don’t actually take into account properties where Council approval is required for development, so the opportunity is even greater!
A Swift Remedy for a Prolonged Issue
With projections indicating an undersupply of around 106,300 dwellings in the national housing market over the next five years, granny flats are said to offer a rapid and cost-effective solution. The federal government has set a target to construct only 1.2 million homes in that time, making granny flats a viable quick-fix option to address this shortfall.
CoreLogic figures showed that an extra two bedrooms and an additional bathroom could add around 32 per cent to the value of an existing dwelling. That is great news for all potential investors.
The full article from CoreLogic can be viewed here.
“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.”
The Wider Impact of Granny Flats
Granny flats are more than just a response to the housing crisis; they present a win-win-win scenario. Homeowners can enhance their property values, generate rental income, and accommodate family members. Investors can access income streams and watch property values appreciate. For renters and the community at large, granny flats increase the availability of affordable housing.
Taking Action
The housing crisis in New South Wales is projected to persist for the next 20 to 30 years. By investing in granny flats, you not only contribute to addressing this crisis but also enhance your financial well-being. This is an opportunity to be part of the solution, improving your own situation while helping those in need.
So now is the time to embrace granny flats as a solution, and work together to ensure a more promising housing future for all. Granny flats can be a catalyst for change, offering stability, income, and a means to combat the housing crisis.
Talk to Bungalow Homes today about the potential of your property, and whether a Granny Flat is feasible to do your part for yourself, and the community.