1-Bedroom vs 2-Bedroom Granny Flats: What’s Right for You?

1-Bedroom vs 2-Bedroom Granny Flat: What’s Right for You?

If you’re planning to build a granny flat, one of the first decisions you’ll face is how many bedrooms you need. While 1-bedroom designs are compact and cost-effective, 2 bedroom granny flats offer greater flexibility and value—especially for growing families or rental potential.

In this article, we compare 1-bedroom and 2-bedroom granny flats to help you decide which is the best fit for your property, lifestyle, and future plans.

Why Bedroom Count Matters

The number of bedrooms in your granny flat will affect:

• Overall size and layout 
• Construction and approval costs 
• Functionality for tenants or family 
• Future resale or rental appeal 

It’s important to balance your current needs with potential long-term uses. Below, we break down the pros and cons of both options.

The Case for a 1-Bedroom Granny Flat

Best for: Singles, couples, retirees, or small studio-style rentals

Benefits:

• Lower cost: Less square meterage means cheaper construction and fewer materials 
• Faster approvals: Easier to meet planning regulations like minimum setbacks or private open space 
• Compact living: Easier to clean, maintain, and furnish 
• Ideal for small blocks: A great solution when land is limited or sloped 

Limitations:

• May not be suitable for families or shared accommodation 
• Limited rental potential compared to multi-room options 
• Lower resale value in some markets 

Why 2 Bedroom Granny Flats Are So Popular

Best for: Multigenerational families, tenants, Airbnb, or future-proof living

Benefits:

• More functional space: Great for families, guests, home offices, or shared rentals 
• Higher rental income: Two-bedroom flats often attract long-term tenants and higher weekly rent 
• Greater resale value: More market appeal if you ever decide to sell 
• Flexible use cases: Can adapt as your family or lifestyle evolves 

Considerations:

• Requires a slightly larger block to meet CDC or council requirements 
• Higher build cost, but often with greater return on investment 
• May need more careful planning for access, setbacks, and privacy 

What to Consider When Choosing

1. Block Size and Site Conditions
   Can your land comfortably fit a 2-bedroom granny flat while meeting minimum setbacks and open space requirements? 
2. Intended Use
   Is the space for rental income, family, or work-from-home needs? If your needs may change, a 2-bedroom could offer better long-term flexibility. 
3. Budget
   A 1-bedroom granny flat is cheaper upfront, but a 2-bedroom can deliver better value over time. 
4. Approval Pathway
   A 1-bedroom may be easier to approve via CDC, but many 2-bedroom designs also comply with NSW SEPP and council DCPs. 
5. Privacy and Access
   Will the granny flat be near the main home? More bedrooms may require smarter planning to keep the spaces feeling separate and private. 

Our Expert Tip

If you’re unsure, a 2-bedroom granny flat is often the safest choice. It offers the most flexibility for growing families, short- or long-term rental, or even resale. With clever design, it doesn’t always require significantly more land—and can feel just as open and comfortable as a 1-bedroom.

Need Help Choosing the Right Plan?

At Granny Flat Solutions, we design and build both 1-bedroom and 2-bedroom granny flats to suit a wide range of sites, budgets, and lifestyle needs. From compact retreats to spacious dual-living designs, we’ll help you find a plan that fits your vision and your land.

Let’s Find the Right Fit for You

Explore our range of customisable granny flat plans or book your free site consultation today. Whether you’re leaning toward a 1-bedroom or 2-bedroom layout, our team will help you make the smartest choice for your future.