When Sheena Carter wishes to connect with her daughter or grandchildren, she opts for a more personal approach rather than using a phone or social media. She simply steps out her back door, strolls down a brief garden path, and knocks on her daughter’s door next door.

This convenient arrangement, however, was not always the case. Eight years prior, Sheena and her husband, Barry Flentjar, made the decision to sell their home in Central Victoria. They then had a prefabricated modular house set up on a sprawling 8-hectare property owned by their daughter, Jacqui Carter, located at the base of Hanging Rock in Newham, approximately an hour northwest of Melbourne.

“We considered building a new home, but the costs were prohibitively high,” Sheena explained. “Then we opted for a modular home, and it turned out to be the best decision we could have made. It was delivered on a truck, just like a pizza, and it has been perfect for our needs.”

This move has positioned them closer to family while allowing everyone their own space. It has also provided crucial support to Jacqui, who balances a full-time job and the demands of raising four children with her husband, Cameron Creer, who works as a firefighter on rotating shifts.

The sale of their previous home not only freed up financial resources for Sheena and Barry but also enabled them to travel. Additionally, the grandchildren now have a welcoming space to visit, whether it’s for a snack, a conversation, or an engaging board game.

Jacqui shared, “My mother and I share a strong bond, but we also respect each other’s privacy; she doesn’t intrude when it’s not needed.”

The Carters’ arrangement reflects a growing trend towards multi-generational living. According to the 2021 census, the number of multi-generational households in Australia rose significantly, from 275,000 to 335,000, representing a 22 percent increase. Currently, one in five Australians resides in such households, a trend that demographer Simon Kuestenmacher predicts will continue as living costs rise.

“We expect to see this trend increase, especially given the substantial cost-of-living challenges people are facing,” Kuestenmacher noted.

While the Carters chose to create an additional dwelling, others, like Michael St Vincent in Newcastle, have opted to adapt their existing homes. St Vincent is modifying his family residence of 56 years to accommodate his adult grandchildren, who are finding it difficult to enter the housing market.

“It’s our responsibility as older generations to assist where we can,” St Vincent remarked.

Kuestenmacher highlighted that while multi-generational living is a cultural norm in some communities, the broader increase in such households is primarily driven by financial necessity.

“Some families choose this setup to foster a supportive environment where grandparents can help care for grandchildren, fostering a nurturing atmosphere,” he said. “However, we must acknowledge that many intergenerational households operate out of financial need.”

In Toorak, Ellen McNeice experienced a profound silence in her home after the passing of her husband six years ago. That quiet was interrupted when two of her adult sons returned home to save for a house deposit, bringing life back into her home.

“It’s fantastic for them because they avoid wasting money on rent,” McNeice stated. “And for me, as I age, it’s comforting to have someone around at night.”

Both generations maintain their independence, with separate food, cleaning, and living routines. While they occasionally share meals, they generally live autonomously. “We agreed from the start that this would be a housemate situation, not just a mother-children dynamic,” she explained.

Last year, McNeice received a diagnosis of motor neurone disease. She remains pragmatic about her situation and the eventual necessity of moving into assisted living. “With a bit of luck, I might have another year or two in my home before needing to move,” she shared.

The housing sector is adapting to the evolving lifestyle preferences of Australians. Although the Carters were able to utilize their spacious regional block, an increasing number of suburban properties are now adding extra dwellings. In New South Wales, approvals for secondary dwellings surged by 24 percent in just one year, partly due to relaxed planning regulations.

Housing Industry Australia has advocated for a streamlined national approach to planning regulations, which would allow for granny flats of up to 90 square meters to bypass lengthy approval processes. Hugh Hartigan, a former research head at Housing Australia, emphasized that modular homes, like the one owned by the Carters, present a timely solution that has yet to gain widespread acceptance.