Granny flats and modular homes can help solve Australia’s housing crisis

Australia’s housing crisis is not just about affordability. It is also about how quickly practical housing can be built where people want to live. That is why granny flats and modular homes remain such a strong part of the solution. Recent Archistar research found that 2,469,477 lots across Australia may have the potential to accommodate at least one granny flat. It also identified 1,991,452 established residential sites with the potential for additional housing under current planning rules, equating to 3,570,458 net new dwellings.

These numbers matter because they show that more housing does not always need to come from major apartment projects or new suburban estates. A significant amount of supply potential already exists in established suburbs. Granny flats or modular homes are one of the most practical ways to unlock some of that potential. They can create extra accommodation for family, renters, as Airbnb units, for farm workers, or essential workers without requiring a full traditional home build. They are smaller in scale, more flexible in use, and often more achievable than larger redevelopment projects.

The report also found that 804,229 lots capable of housing granny flats within two kilometres of a train station, while 753,725 are near a hospital. That makes granny flats especially relevant in areas where there is a big need for housing close to amenities.

Modular home building methods, such as those used by Aussie Bush Cabins, strengthen this opportunity even further. While granny flats solve the housing need, modular construction helps solve the delivery problem. Building off site in a controlled environment can reduce build time, minimise weather delays, and create a more efficient path from design to installation.

In Western Australia, this is especially relevant. The Archistar report identified 98,876 development sites across WA with the potential to create 152,228 net new dwellings, including 77,394 sites in Greater Perth alone with the potential to create 119,795 additional dwellings. While that is broader than granny flats alone, it reinforces the same point that established areas already hold meaningful housing potential.

Australia’s housing shortage will not be solved by one housing type alone. Granny flats and modular homes remain among the clearest, fastest and most practical ways to add housing supply where it is needed most.

If you’re looking for a practical way to add more space or accommodation to your property, contact Aussie Bush Cabins for a free consultation today!