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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.”
With Easter coming up it is time for an update on fuel price related cost increases, the proposed minimum financial requirements, and also some enforcement activity by WorkSafe.
Tasmania can deliver both the Macquarie Point Stadium and the homes the community urgently needs, but only if government adopts a clear and coordinated construction workforce strategy, according to the Housing Industry Association (HIA).
“New house building approvals were relatively steady in February 2026 at 9,950, the second highest monthly volume in over three years,” stated HIA Senior Economist Tom Devitt.
Proposed changes to negative gearing and capital gains tax would worsen Australia’s rental crisis by reducing the supply of housing and putting upward pressure on weekly rents, Housing Industry Association (HIA) Managing Director Jocelyn Martin said today.