Why Are More Families Considering Multigenerational Living?

More families are exploring multigenerational living as a way to stay close, share resources and retain personal space. For households in Berwick, Officer, Beaconsfield and surrounding suburbs, a dual-occupancy property or separate second dwelling can offer a practical middle ground: two living spaces, one shared location and more flexibility as family needs change.

Why is multigenerational living attracting more attention?

Living with extended family is not new, but the housing options people consider are changing. Adult children may want greater independence while saving towards their next move. Parents may want to live nearby as they get older. Grandparents and young families may value being able to help one another with everyday routines.

Australian Housing and Urban Research Institute research identified a long-term rise in multigeneration households in Australian cities over the period it studied, from 1981 to 2006. That historical research supports the idea that this is an established housing pattern, but it does not tell us how quickly dual-occupancy homes are being taken up in Melbourne’s south-east today.

What is clear is that flexible housing arrangements can answer several needs at once: closeness, independence, convenience and the ability to adapt over time.

What are the benefits of two homes on one property?

More independence with family nearby

Separate entrances, kitchens and living areas can give each household its own rhythm. Family members can spend time together by choice, while maintaining privacy and personal space.

More practical everyday support

Having grandparents, parents or adult children close by can make it easier to coordinate school pickups, share meals, check in on one another or lend a hand when plans change. It works best when everyone agrees on expectations and boundaries.

Potential to share some costs

Depending on how a property is owned and occupied, family members may be able to share some household expenses. But two dwellings also come with costs: utilities, insurance, maintenance, rates and potentially separate financing or tax considerations. A shared address does not automatically mean lower overall expenses.

Room for the next stage of life

A layout that suits grandparents today may suit adult children later. Some families may also want the option to rent a dwelling in the future, subject to the property’s approvals and applicable tenancy rules. Flexibility is valuable when it is supported by the actual layout, permissions and ownership arrangements.

What kinds of properties can support multigenerational living?

Not every property described as “dual occupancy” works the same way. Before falling in love with a floor plan, understand what has been approved and how the spaces can legally be used.

Common living arrangements for extended families

Arrangement	How it may work	What to check
Two established dwellings on one site	Separate homes can give two households considerable independence.	Planning and building approvals, title arrangements, shared services and access.
Small second dwelling	A self-contained smaller home alongside an existing home may suit a parent, adult child or another household.	Size limits, permits, site constraints and whether subdivision is prohibited.
Adapted home with flexible zones	A larger home with multiple living areas may create some separation without two self-contained residences.	Privacy, accessibility and whether proposed works or uses need approval.

In Victoria, updated planning provisions effective 15 October 2026 increased the maximum floor area of a “small second dwelling” from 60 to 80 square metres. In many residential settings a planning permit is not normally required, but exceptions apply, and a building permit is normally still needed. Small second dwellings cannot be subdivided into separate lots under these provisions. Always confirm the rules for the particular address with the local council and relevant building professionals.

What makes a dual-occupancy property work well for a family?

The best setup is not necessarily the biggest. Consider whether each household has practical privacy, safe and easy access, suitable bathrooms and bedrooms, sufficient storage, comfortable outdoor space and a way to manage parking.

It is also worth discussing how shared areas will work. Who looks after the garden? How will bills be divided? What happens when someone wants to move out, sell their interest or change the arrangement? Putting expectations in writing can help families make decisions with clarity.

Is a dual-occupancy home right for us?

Start with the people, not the property listing. Identify who will live where, what level of independence each household wants, and which costs and responsibilities would be shared. Then assess properties against those needs rather than assuming every two-dwelling site offers the same flexibility.

For families exploring options in Berwick, Officer, Beaconsfield and nearby suburbs, we currently have dual-occupancy opportunities available. Our team at Peake Real Estate can talk you through the available properties and their features on 9707 5300. You can then seek independent advice about ownership, finance, tax and approvals before making a decision.

Common questions

Is multigenerational living only for older parents and their children?

No. It can also suit adult siblings, extended families and households that want closeness with separate routines. The right arrangement depends on the people involved.

Does dual occupancy always mean two separate titles?

No. Two dwellings on a site do not necessarily have separate titles or the right to be sold individually. Check the title and approvals for the specific property.

Can we rent out the second home later?

It may be possible, depending on the dwelling’s approvals and the applicable rules. Check with the local council and seek advice on tenancy, insurance and tax implications.

Does adding a second dwelling always require council planning approval?

No. Some Victorian small second dwellings qualify for a planning permit exemption, subject to conditions. Building permits and other requirements can still apply.

A flexible way to stay connected

For the right family, multigenerational living brings together two things that can be hard to balance: independence and connection. The key is finding a property where the physical layout, legal arrangements and family expectations all work together.

This article provides general information only and is not legal advice. Requirements can change, so consider obtaining advice that reflects your circumstances.

Sources

• Australian Housing and Urban Research Institute, Multi-generation households in Australian cities
• Victorian Government, Small second homes
• Australian Institute of Family Studies, Families and family composition