With high home prices and increasing urbanization, Australian cities are now accepting a dwelling type that could provide affordable housing in established neighbourhoods in dense cities.

Granny flats, also known as laneway homes or Accessory Dwelling Units (ADUs), are finding increased acceptance from governments in many competitive real estate markets. As home prices rise in cities such as Melbourne, granny flats can provide an affordable, adaptable alternative. According to researchers Dr. Debbie Faulkner and Dr. Paul…