Granny Flat
A granny flat is a small secondary dwelling unit on the same lot as a main residence, used for rental income or multigenerational living.
September 30, 2025
What is a Granny Flat?
A granny flat, also called an accessory dwelling unit (ADU), is a small, self-contained residential unit located on the same lot as a primary residence. It typically includes its own entrance, kitchen, bathroom, and living space, providing independent living arrangements. Granny flats are used for extended family, rental income, or multigenerational living. They may be attached to the main home, built over a garage, or designed as a detached unit.
Why Granny Flats Matter in Real Estate
Granny flats matter in real estate because they increase housing supply and offer affordable rental options. They can also enhance property value and generate rental income. However, zoning restrictions, servicing requirements, and parking regulations often limit their construction. Homeowners considering granny flats must account for building codes, financing, and potential tax implications.
Example of a Granny Flat in Action
A homeowner converts a garage into a legal granny flat with a separate entrance and utilities. The unit is rented to a tenant, generating monthly income while adding long-term value to the property.
Key Takeaways
- Granny flats add gentle density to neighborhoods.
- They support multigenerational living and rental income.
- Zoning and servicing rules regulate construction.
- Can increase property value when legalized.
- Require careful planning for compliance and financing.
Related Terms
- Secondary Suite
- Laneway House
- Zoning
- Parking Requirement
- Building Permit
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
