More than Just a Granny Flat: Urban Planning Expert Says ‘IMBY Homes’ Could Curb Housing Crunch

IMBY typologies that could revolutionise Australia’s housing market

One of Australia’s top urban planners says ‘IMBY’ (In My Back Yard) homes could be the missing piece of the puzzle needed to solve the housing crunch if government restrictions further ease and different designs are offered to homeowners.
 
Mike Day has led design teams on urban renewal and new township projects across Australia, the UAE and Asia for 30 years. He is a Partner at Hatch – a global multidisciplinary leader in engineering, operational and development projects in metals, energy and infrastructure – a Fellow of the Planning Institute of Australia and a member of numerous urban planning committees. 
 
Mike argues the innovative second dwelling goes far beyond the traditional ‘granny flat’: IMBY homes are retrofitted dwellings that span studios, an adjoined annex, a unit above a garage, or even a two-bedroom backyard unit. They encompass a range of sizes and typographies that could suit hundreds of thousands of backyards, or even a home itself. 
 
If widely embraced, IMBY homes could alleviate the housing shortage, following an ease of state government second-dwelling permit restrictions across the nation. For instance, the Victorian Government’s latest Housing Statement has axed planning permit requirements on granny flats in most cases.¹ In Queensland, the Government recently eased granny flat rental restrictions.² The shift has already sparked the emergence of new granny flat typologies, such as the 100-square-metre two-bedroom granny flat dubbed The Hampton from Brisbane’s Granny and Co³.  Domain’s latest Rent Report also reveals weekly asking rents are at record highs across most capitals and vacancy rates remain below 2 per cent.⁴
 
New report reveals logistical challenges & homeowner attitudes to IMBY homes
Mike says the nation needs to embrace the full spectrum of the IMBY home and further ease permits to encourage an IMBY renaissance.   

In joint research with community affordable housing provider Haven Home Safe, Hatch delivered a report on the potential and challenges of building small second homes in Victoria late last year. It revealed permit restrictions remained discretionary between different councils. Other barriers that led to a sluggish uptake of IMBY homes were fears of a loss of garden, inadequate visitor car parking, an inadequate sense of address and even postal delivery concerns.
 
Mike says: “State governments have made strides in scrapping planning permits for flats under 60 square metres, but better cohesion between councils and a shift in how we view IMBYs is needed.
 
“There’s a plethora of typologies and variations that, if embraced, could change Australia’s housing landscape. But we must also push for better neighbourhood design to ensure walkability and public transport networks are in place or the potential for a second dwelling will remain locked.” CoreLogic and Archistar recently identified that more than 655,000 residential properties could be suitable for a granny flat across Brisbane, Sydney and Melbourne – and if utilised by homeowners they say it could ease the supply and affordability concerns plaguing the nation.⁵
 
But despite so many homes being prime real estate for a second dwelling and permit restrictions easing, Mike says second dwelling uptake remains limited. Mike says: “Appetite and demand is there for tenants who would rent an IMBY home. But what’s needed now is a multi-pronged approach to ensure homeowners have access to the full design IMBY gamut and state governments work hand in hand with councils to streamline restrictions.”
 
Data published by the Housing Industry Association estimates the number of granny flats or second dwellings being built remains lower than 2017 levels in NSW while in Victoria, just 1,350 granny flat permits were issued between 2019 and 2023 which equated to a scarce 270 per year.⁶ “Showing Australians how many types of IMBY homes are on offer and how to design one that blends with a home, block and even the street could drive those numbers north,” says Mike.
 
For Victoria’s most vulnerable, IMBY modular homes are already playing a key role in housing affordability with Have Home Safe delivering a modular housing program across regional Victoria, which will be tenanted from October.
 
Affordable housing provider Haven Home Safe to provide 25 IMBY homes in Victoria
Haven Home Safe CEO Trudi Ray says through its partnership with ARKit – Advanced Prefabricated Architecture – and Homes Victoria CEO, Haven Home Safe will provide 25 new homes for people on the Victorian Housing Register,⁷ adding that IMBY modular homes are a top feasible solution for the housing and homelessness crisis.
 
“The ability for modular homes to provide diversified housing options is a big plus, when considering the majority of social and affordable housing renters are looking for smaller one-to-two-bedroom homes. Smaller homes also mean reduced energy expenditure for renters,” says Trudi.
 
“Additionally, with the Victorian Housing Statement allowing small second homes to be built on existing properties, we have identified 55 sites that we already own where we could add a modular home. This would significantly and swiftly increase affordable housing supply.

“We are currently fundraising to deliver a pilot IMBY so we can demonstrate the success of this approach and work with the CHP sector to drive new housing outcomes and innovate supply. If the sector recognises modular IMBYs as a valued housing class within the continuum, we can increase stock and infill at a lower cost and with speed.”

Trudi says for their pilot partnership with ARKit, modular homes were built in a warehouse and then transported to the site and craned into position with builders then creating the final joins and finishing touches. “The modular prefabricated system removes the issue of finding trades in regional and rural areas, as their prefab construction is built offsite,” says Trudi.

1 https://www.planning.vic.gov.au/guides-and-resources/strategies-and-initiatives/small-second-dwellings#:~:text=Following%20the%20Victorian%20Government’s%20Housing,flooding%2C%20environmental%20or%20other%20special
2 https://www.planning.qld.gov.au/planning-issues-and-interests/granny-flats
3 https://www.grannyandcohomes.com.au/the-hampton/
4 https://www.domain.com.au/research/rental-report/june-2024/
5 https://www.archistar.ai/granny-flat/
6 https://hia.com.au/our-industry/housing/in-focus/2024/03/granny-flat-fever
7 https://havenhomesafe.org.au/news-media/media-releases/innovative-partnership-to-deliver-more-homes-for-horsham-2