The four ways to do it in Melbourne
- Dual-living home - one house with a self-contained wing: a second master, kitchenette and living zone with its own entry. The simplest and most common.
- Granny flat (dependent person's unit) - a small second dwelling on the same block. Victorian rules for small second dwellings have been eased to make these easier on larger lots. Check your council and the current state provisions.
- Dual occupancy - two separate dwellings on one lot, side-by-side or front-and-back, sometimes on separate titles. Needs a planning permit in most cases.
- Knock-down rebuild as a purpose-built multigen home - the best long-term result if you own a suitable block, designed around privacy and accessibility from day one.
What a good multigenerational home gets right
- Two front doors, or a clearly separate entry for the second generation
- A second kitchenette or full kitchen, plus a second living zone
- Acoustic separation between the two living areas - the single most important detail
- A ground-floor bedroom and bathroom for ageing parents (no-step, wider doorways)
- Shared but zoned outdoor space so everyone gets some privacy
- Separate or sub-metered utilities if you want to split running costs fairly
Real Melbourne numbers (2026)
General market observations as of mid-2026, not quotes.
Granny flat / small second dwelling (50 to 65 sqm): $160k to $320k built, depending on finish and site access.
Dual-living single home with self-contained wing: $750k to $1.25M build on your own land.
Dual occupancy (two dwellings on one lot): $900k to $1.7M build combined, plus planning permit and possible subdivision costs.
Purpose-built multigen knock-down rebuild: $850k to $1.5M build, plus demolition and site works.
Planning rules to understand in Victoria
- A small second dwelling (granny flat) on the same title is easier than it used to be under recent state changes, but councils still control siting, overlays and size.
- Dual occupancy and two titles almost always need a planning permit, and subdivision is a separate process through your council and the plan of subdivision.
- Overlays (heritage, bushfire, flooding, significant landscape) can change what is allowed - always check the planning scheme for your property first.
- If separate ownership or inheritance matters to your family, get legal advice on titles and co-ownership before you design.
Where it works best around Melbourne
- South-east (Berwick, Rowville, Keysborough) - larger established blocks suit dual living and dual occ.
- West (Point Cook, Tarneit, Truganina) - newer large lots and builders who offer dual-living designs.
- North (Craigieburn, Mickleham, Mernda) - growth-corridor blocks big enough for a second dwelling.
- Middle ring with big blocks (Glen Waverley, Doncaster) - premium, but strong for long-term multigen value.