Property prices, the cost of living and the balance of work/life mean that the ‘nuclear family’ home is no longer the norm in a lot of scenarios throughout the country. The two parents + children family has changed considerably over the past few decades with households accommodating varied living arrangements.
Parents, grandparents, aunts and uncles, cousins, even returning adult children make up some of the varied dynamics of the 2022 Australian family.
But multi-generational families and households are nothing new. Many cultures around the world, and indeed within Australia, have long embraced extended families living under the one roof and recognised the many benefits, with emotional and financial being two of these.
While our population’s living arrangements are varied, some by choice and others by necessity, economic circumstances have been a driving factor for families, related or otherwise, to consider coming together under one roof in recent years.
What does this mean for landlords? How does it affect mum and dad investors across the country? The short answer is that it doesn’t. But it does show that properties which accommodate multiple living/dual occupancy spaces are in a good position moving forward in the current climate.
Granted, not all types of property can accommodate larger family dynamics, but for those that can – or, for those considering renovations – the appeal of a multi-living property could have the potential to open up a greater tenant scope when on the market.
Recent ABS data supports the growth of multi-generational living, with three-generation living arrangements seeing an increase from 275,000 in 2016 to 335,000 in 2021.
Granny flats, semi-detached and garage conversions are becoming more popular options; but not restricted to these, separate second dwellings on the one property are increasing in popularity. If your property allows for it, this could potentially mean a whole other income stream. It may be something to consider if you’re looking at purchasing another investment property, too.
The needs of renters have changed, and they will continue to, which is why the knowledge and expertise of property managers is an asset for you when it comes to your investment.
