Granny Flats vs. Tiny Houses: Which is Right for You?


When it comes to adding extra living space to your property, two popular options are granny flats and tiny houses. Both provide compact, efficient living areas, but they differ significantly in terms of design, functionality, and legal requirements. Understanding these differences can help you make an informed decision that best suits your needs.

Tiny House vs. Granny Flat: Key Differences

FeatureTiny HouseGranny Flat
MobilityTransportableFixed on a foundation
Council ApprovalNot typically requiredUsually required
Council FeesNo contribution feesContribution fees likely
LocationCan be located almost anywhereTypically located in the backyard
Living Space20-32 m230-60 m2
EthosSustainable, off-grid capabilityConventional building practices
Power SourceOff-grid options availableTypically connected to grid
Price Range$80,000 – $160,000$80,000 – $250,000

Council Planning Approvals: What You Need to Know

One of the most significant differences between tiny houses and granny flats is the need for council approval.

Tiny Houses: These are often classified as caravans, meaning they can be parked on a property with an existing dwelling without needing council approval, which can save you both time and money. This flexibility is a major advantage, especially for those who want to place their tiny house on a vacant block or move it around as needed. However, there are some restrictions on how long you can live in a tiny house or rent it out, depending on local regulations.

Granny Flats: These are typically considered permanent structures and require council approval. The approval process can vary greatly depending on your location, with planning fees and levies ranging from minimal to several thousand dollars. Some properties may be exempt from these requirements, but it’s essential to check with your local council before proceeding.

If your council rejects your granny flat plans, a tiny house could be a viable alternative, offering similar living space without the regulatory hurdles.

Versatility of Tiny Houses

Tiny houses offer greater versatility compared to granny flats. While both can serve as additional living space for family members, such as aging parents or visiting guests, tiny houses have a broader range of uses:

Conclusion: Which One is Right for You?

Choosing between a granny flat and a tiny house depends on your specific needs, budget, and long-term plans. If you’re looking for a flexible, movable home that doesn’t require council approval, a tiny house might be the perfect fit. On the other hand, if you want a larger, permanent structure with a conventional building approach, a granny flat could be the better option.

No matter what you decide, both options offer innovative ways to maximize your living space while embracing a simpler, more sustainable lifestyle.