Granny pod to replace granny flat in new fix for Aussie housing crisis as back yards shrink, backed by James Hardie, Neale Whitaker
Forget the granny flat, the next big (well, small) thing for Aussie homes is the granny pod. Check them out here.
Forget granny flats, the next big (well, small) thing taking over Aussie back yards is expected to be the granny pod, and its already won over reality renovation TV royalty Neale Whitaker.
The modular-build version of the more traditional granny flat is created off-site and trucked in as a whole or in parts as a faster, cheaper way to get nans and grown-up kids a space of their own in the garden.
But times are tough, so even nan’s having to get a downsize and instead of a one-bedroom flat with a kitchen and bathroom, the pod is largely expected to be a studio space.
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The James Hardie Modern Homes Forecast 2025 has tipped the granny pod as a key upcoming solution to rising issues with loneliness, as well as the cost of living crisis raising the appeal of multi-generational living for those looking to save on child care and aged care.
The home exterior materials group has highlighted modular designs by Mira Residential as a near-future factor in Aussie housing as the traditional granny-flat that is currently found in one-in-five backyards, is increasingly forced to contend with shrinking garden sizes.
Since 2022 state governments in Queensland, South Australia, Western Australia and Victoria have all altered legislation to make granny flats and small, backyard dwellings more appealing — and in many cases easier to get approved by planners.
Australian home design doyen Neale Whitaker is backing them as a “wonderful solution to make a big impact to living arrangements, by maximising the limited space available in Australian back yards”.
Mr Whitaker stars opposite Andrew Winter on reality renovation TV show Love It Or List It, and said that with the forecast noting a third of Aussie households were expected to have multiple generations in the one home by 2041, finding ways to make smaller amounts of space comfortable would be key to family harmony in the near future.
To that end he’s tipped granny pods to be big on clever storage space, neutral colour palettes, functional features and double glazing, as natural light would make a smaller space comfortable, and noted it could even see the return of the fold-out bed, or Murphy bed.
“My view is that multi-generational living has to be seen as a potential long-term proposition, whether we are talking about adult kids or ageing parents,” he said.
“So the granny pod accommodation needs to be as autonomous as possible, allowing the occupants to live independently as well as join the larger family unit on occasion.”
He added that they were likely to add “market appeal” when designed to suit a home’s existing aesthetic.
“Storage will be at a premium, as will shelving that can be used for both stacking and display,” he said.
And while the granny flat has paved the way for this to be a reality for one in five households today, shrinking backyard sizes and rising building costs have driven demand for more affordable options.
James Hardie are also expecting the spaces to appeal to families looking for a pilates studio or home office, rather than a space for someone to live in.
The firm was not able to estimate exact cost differences between a traditional granny flat and a granny pod, but said that even with variations from site to site, size and material choices, they would typically be substantially cheaper due to off-site construction.
Their Modern Homes Forecast also acknowledged a number of global factors likely to hit Aussie homes in the near future, including rapid changes brought on by AI.
The report notes that 70 per cent of architects are already incorporating the technology in their practices, and Telsyte research shows 7.6 million Aussie homes were connected to at least one smart device by 2023.
They are also predicting growing concern over climate risks will prompt home design changes across the nation, with a greater focus on those that can maintain temperatures, and limit energy bill pain, in the face of extreme weather.
Cost of living concerns will increasingly push builders towards prefabricated builds, with large sections of homes built off site, as well as rising land costs leading to an increase in double-storey homes.
The federal government has already begun to fund a certification scheme for those wanting to get prefabricated homes approved under the National Construction Code, while the nation’s biggest lender, the Commonwealth Bank, recently announced they will soon begin to issue loans for prefabricated home builds — with most major lenders currently refusing to do so due to how it impacts new housing construction contracts and their payment milestones.
The Forecast also projected a growing focus on wellbeing at home, with the report indicating air filtration, indoor-outdoor connections, better sustainability and particularly less need for heating and cooling will be driving home innovations in the coming years.
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Originally published as Granny pod to replace granny flat in new fix for Aussie housing crisis as back yards shrink, backed by James Hardie, Neale Whitaker
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