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HIA Tasmania Executive Director Benjamin Price said granny flats are one of the quickest and most sensible ways to boost housing supply, particularly in established suburbs close to jobs, schools and services.
“Bigger granny flats mean bigger choice, and lifting the size limit helps get unnecessary regulation out of the way of sensible housing options,” Mr Price said.
“This change gives homeowners and builders the flexibility to build a genuinely usable second home that meets real market demand.”
Mr Price said the national experience showed exactly what happens when planning barriers are removed.
“Nationally, granny flat construction has surged, with HIA analysis showing members expect to build around ten times more granny flats this year than they did in 2022,” he said.
“Too often pointless red tape gets in the way of sensible housing choices, and this change clears a path for more homes to actually get built.
“With land supply constrained and construction capacity under pressure, we need to make better use of the land we already have. Granny flats do exactly that.”
Mr Price said increasing size limits made granny flats far more practical for renters, downsizers and multigenerational families, while also supporting local builders and tradies.
“Larger granny flats mean more choice for families, more rental supply, and more work flowing through the residential building sector,” he said.
“If we’re serious about housing supply, then freeing up infill opportunities is simply common sense.”
Mr Price said Tasmania was now well placed compared to other states.
“At 90 square metres, this puts Tasmania at the very top end nationally for granny flat size, giving families and builders flexibility you simply don’t see in most other states.”
HIA said granny flats should be treated as a core part of the housing solution and called on governments to continue removing barriers that slow small scale, shovel ready projects.
“The fastest way to deliver more homes is to let people build them where infrastructure already exists,” Mr Price said.
“Granny flats are a practical, low impact way to do exactly that.”
Discover the winners of the 2026 HIA SA Building Women Awards, recognising outstanding leadership, innovation, professionalism and achievement in construction.
The achievements, leadership and contributions of women in the residential building industry were recognised today at the 2026 HIA Hunter Building Women Awards.
The Housing Industry Association (HIA) condemns the Victorian Government’s decision to progress proposed legislation in Parliament during National Skills Week that would impose new and unnecessary red tape on employers of apprentices.
“The Housing Industry Association welcomes the implementation of a statewide Community Participation Plan,” commented Brad Armitage, Executive Director NSW.