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Flexible living and rental income potential are reshaping the housing market this spring, with “granny flat” climbing the rankings across multiple cities, according to Domain’s This Spring’s Housing Buzz report.
In Sydney, “granny flat” is now the most searched term, displacing lifestyle keywords like “waterfront” and “view.” The city’s buyers are searching most for three-bedroom houses at a median of $1.7 million, followed by two-bedroom houses around $1.5 million. For those priced out of the house market, two-bedroom units at roughly $900,000 have become a popular entry point.
Despite houses making up 74.1% of Sydney search activity, the report shows a growing appetite for townhouses and units as buyers look for affordability and options that allow flexibility. Hotspots such as Leichhardt, Marrickville-Sydenham-Petersham, and Mosman reflect where this demand is strongest.
The pattern repeats elsewhere. In Perth, “granny flat” ranked second overall, just behind “pool.” Houses account for more than 81% of searches, with the typical three-bedroom house or townhouse at about $850,000, and units averaging closer to $600,000. Searches are concentrated in Cottesloe-Claremont, Fremantle, South Perth, and Kalamunda, areas where block sizes and versatility support separate living quarters.
Brisbane buyers are also signalling a preference for adaptable housing. “Dual living” appeared in the city’s top search terms, with buyers particularly active in family-oriented suburbs such as Sherwood-Indooroopilly and Holland Park-Yeronga. Houses account for 75.5% of searches, and three-bedroom houses at around $900,000 remain the most popular, though townhouses and units are steadily gaining share.
Even in Adelaide, where “pool” remains the top keyword, “granny flat” has broken into the top 10. Houses dominate with 82.3% of searches, but affordability pressures are evident: three-bedroom houses typically attract searches at about $850,000, while two-bedroom houses sit closer to $750,000. Suburbs such as Unley, Burnside, and Adelaide Hills are seeing demand where block sizes allow for extra dwellings.
The move towards flexibility sits alongside a clear affordability divide. In Melbourne, where “granny flat” does not rank as highly, the report notes a sharp contrast between house searches at around $1 million for three bedrooms and unit searches at about $600,000. Buyers in areas like Stonnington, Yarra, and Darebin are focusing on heritage-rich homes but facing the same price pressures as in other capitals.
Across the capitals, Domain’s data indicates that the ability to house extended family, generate additional income, or create versatile living arrangements is no longer a niche concern. With houses priced well above $1 million in Sydney and Melbourne and approaching that level in Canberra, demand for flexibility has now become a central part of the market.
