The Changing Face of Melbourne’s Homes.
Is it a change in culture or response to the current first home buyer market crisis or the spiralling cost of quality aged care that’s changing what people want in a home? Mostly likely is all three, but regardless of the reasons, Multi Generational Homes are in high demand across Melbourne’s property market.
In a recent article in the Real Estate Conversation, the author John McGrath from McGrath Real Estate discusses (amongst other things) the change in housing needs in recent times and the growing demand for “intergenerational houses”. The data supports this growth with Australian Bureau of Statistics data from June 2025 revealing that one in five Australian households now contains three generations, a 22% increase since 2016.
Like many of our clients you may be realising that the state of the first home buyers market, means your children will be with you for many more years, even bringing a partner into the home while they try to complete their education and establish themselves financially. Added to that you are aware of your own parents aging and while they are hopefully still independent and enjoying their retirement, a longer-term view will see them needing some support in the next few years.
Breaking the Stigma: From “Cramped” to “Custom”
While to the average Australian its always seemed like an imposition or something you would only do in a pinch, but having 3 generations in one household is something to be embraced across many or perhaps even most cultures.
For many, the barrier is often just a lack of imagination, only thinking inside the box (or Home) that you are currently living in. Once you start to think beyond that and start to understand what a custom designed home can offer and how it can overcome the logistics as well as any ‘ick’ points, the option of multi-generational living becomes much more attractive.
- Separated Spaces: Distinct areas that can offer true privacy as well as easy connection.
- Multiple Master Suites: Think of a luxury apartment, each ensuring everyone can enjoy luxury and independence.
- Intelligent Access: Multiple entries and even internal lifts for direct private access to each space as well as effortless movement between them. All without compromising the street appeal.
- Shared Common Spaces: Thoughtfully designed to allow for family time and entertaining.
- Functional Duplicity: Separate kitchens or kitchenettes, additional car parking, even private outdoor spaces
This all means you can easily care for / assist (or be assisted by) your Children and Parents as much or as little as you like. Plus you get to stay living in the same street and suburb you are now, so your lifestyle is enhanced not compromised.
And with the alternatives being to lend or give your kids a heap of cash so they can buy their own home or apartment (assuming they can make the repayments) often many suburbs away. While at the same time encourage your parents to move into a Retirement Village or arrange assistance at home through various care and support companies. A multi-generational home starts to look even more attractive
Reinventing the Granny Flat.
A multi-generational home doesn’t have to be just one large dwelling. The Victorian Government has relaxed its regulations around “secondary dwelling or an accessory dwelling units” aka Granny Flats, to the point where many do not need a planning permit and they can easily be incorporated into any new build.
A granny flat does not have to be just for your parents, It can be used by any family member at all AND it can even be rented out to totally unrelated people and providing passive income.
Granny flats can also be incorporated with other outbuildings, like pool cabana’s or pavilions, detached alfresco, gym or rumpus room. So will add immense flexibility and value to your primary residence.
Why a Multi-Generational Build is a Smart Investment
Choosing to knock down and rebuild a bespoke multi-generational home offers several strategic advantages:
- Asset Growth: Demand for these versatile homes is skyrocketing, securing your long-term investment.
- Financial Wellness: Significant savings compared to the ongoing costs of Retirement Villages or Aged Care facilities.
- Tax Advantages: There are significant tax advantages and earning potential especially to Granny flats
- Lifestyle Continuity: Stay in the Melbourne suburb you love, surrounded by your community and your family, without compromising on luxury.
- Connected Support: Facilitate effortless care for parents and support for children while maintaining everyones own personal space.
- Ongoing flexibility: Built to last and designed to stay relevant, the home can be retained in the family and used across many generations.
All of which means the option to knock down and rebuild a home that suits your whole family now and well into the future seems like one worth consideration.
Why Ravida
Ravida Homes has such broad experience in designing Multi-Generational Homes in Melbourne, across differing family situations and needs and across many differing cultures, Ravida can take care of everything from the design, specialised inclusions, permits and authorities to the finishing touches to the landscaping.
