Exploring Australian Housing Trends: Benefits of Multi-Generational Living

We’ve all heard the age-old saying, ‘two heads are better than one’. But what if that could actually apply to home ownership too?

In recent years, Australia has seen a significant increase in the number of multi-generational households. This trend is particularly prevalent in major cities where housing affordability is increasingly challenging, and the cost of living has risen significantly. According to the last Census, one in five Australians lived in a multi-generational household, with this number expected to have increased since then.

What is Multi-Generational Living?

A household in which two or more generations of related adults live together is considered to be multi-generational. The reasons for this living arrangement vary but include financial benefits, cultural traditions, caring for elderly parents, grandparents caring for children so parents can work or supporting adult children. In many cases, this arrangement provides a win-win situation, with financial and emotional support available to all family members. 

Families can pool their resources and have access to more substantial properties that might not otherwise be accessible to them. For instance, a young family may be able to purchase a bigger house with the help of their parents or grandparents, or in some cases younger generations may choose to build a smaller dwelling adjacent to their parents’ or grandparents’ home. This reduced financial outlay and family support can enable the younger generation to save a deposit for their own home, while contributing to the family.

Multi-generational living is not only beneficial financially, it can provide improved mental and physical health for everyone in the family. With more people living together, it creates an environment where people are less isolated and can get support from one another when needed. With the increase in mental health awareness and the stress and strain of the last few years, this facet of multi-generational living cannot be overlooked. A sense of community and belonging can be significant for the older generation, who can become isolated and lonely. On the other side of the coin, with grandparents around, children can learn valuable life lessons that otherwise may not be available in single-family homes. Not to mention, it’s wonderful to have extra support and help when those little ones come along!

The big question is - how to make multi-generational living work for you?

There are several options available for multi-generational living in Australia.

Renovate

One option is to renovate an existing home to create separate living spaces for each generation, having the whole family under one roof. Options could include converting a garage or attic into a living area or adding an extension to the home. Extensions featuring living spaces, kitchenettes and ensuites that will suit aging parents or teenage to adult children are becoming increasingly popular. Such extensions provide a safe yet separate space for elderly relatives or an independent, self-contained space for teen to adult children, serving the previously described benefits.

Renovations to an existing building can include lifting and building, as is often seen in Queensland; adding a "wing" as is popular with brick homes; or, if the block is big enough, adding a separate dwelling on the same site. The separation of a granny flat can be an ideal solution for many who still wish to have autonomy for elders or young adults. The added bonus of a granny flat is that it can be rented out in some areas as a source of income when no longer in use by a family member. This provides an ongoing benefit financially. Some councils and zoning areas don’t allow for secondary dwellings, whilst others encourage their use. Data from OneFlate indicates that granny flats are a growing trend in Australia with a 67% increase in granny flat jobs posted. Unfortunately in Victoria there are limitations on the granny flat options and they need to be moveable and for a person dependent on the primary household. We are hoping this may change in the future.

Relocate

Alternatively, families can choose to purchase a larger home that already has separate living areas or ability to design another wing of the house. Whilst this may seem costly, with a number of family members contributing to the overall costs of moving along with the property itself it could be a feasible option.

There are more and more properties coming onto the market that provide opportunities for multi-generational living, as savvy investors recognise this growing trend.

Re-design and Construct

Yet another option is to build a new home that is specifically designed for multi-generational living, with separate entrances, flexible spaces that can grow and change with housing needs and self-contained living spaces. Planning this type of living arrangement from scratch can be ideal, creating spaces that consider each family member's needs, likes and dislikes, and planning for future scenarios. For example, keeping older family members' zones on a single lower level and adding features such as built-in shower seating and the like, ensuring seniors maintain autonomy well into old age. Functional design features that enable areas to be closed off or opened out provide flexibility over time are ideal in multi generational homes. This ABC  news feature of a purpose built home in Melbourne designed to accommodate three generations of family provides some clever design ideas with the ability to change the layout over time. 

Residential Community

Finally, families can consider purchasing a multi-unit property, such as a duplex or triplex, where each generation has their own unit. Whatever the option, multi-generational living can provide many benefits for families, including financial savings, stronger family bonds, and shared responsibilities.

Multi-generational living is currently a hot topic in the Australian news and is becoming an increasingly popular trend in capital cities, with no signs of slowing down soon. Many families are beginning to take advantage of its numerous benefits. If you’re considering making the move to a multi-generational home, it’s important to thoroughly research your options and make sure it’s the right fit for your family, but it’s easy to see that there are many ways to make multi-generational living work for you. If this is something that you and your family are considering Urbankind can help. With experience in different contexts from families adding a Tiny Home in the backyard in Torquay for their father to live in as a Dependent Persons Unit to clients designing their forever beach home on the Surf Coast to have a grandparents retreat so they can enjoy their retirement with the kids and grandchildren close but not too close on the weekends or parents subdividing their land to gift to their children to build on. We’d love to help you understand your options and key planning considerations so you can make informed decisions from the outset. 

Book a free chat today with one of our team so you can understand your options and decide what’s best for you and your family!

January 2024 edit - new planning changes have been implemented to make it easier for some families to build a small secondary dwelling. Dependent Persons Unit is no longer and option. Get in touch to find out what the new changes mean for your plans.