We get asked this all the time: “Should I build a shed home or a granny flat?” They’re fundamentally different products for different situations, and choosing the wrong one can cost you tens of thousands of dollars and months of wasted time.
Here’s the real comparison from someone with 38 years in the building industry.
What Is a Shed Home?
A shed home is a full-sized residential dwelling built within a steel-framed portal structure. These are not small backyard builds — they’re large-scale homes typically on rural or semi-rural acreage, often 150m²+ of living space with multiple bedrooms, bathrooms, kitchen, and living areas.
The steel frame acts as the building envelope, with internal fitout to residential building standards. Think of it as building a home inside an engineered steel shell.
What Is a Granny Flat?
A granny flat (also called a secondary dwelling or ancillary dwelling) is a small self-contained dwelling on an existing residential block. They’re typically limited to 60m² in most states and are governed by specific secondary dwelling regulations.
Key Differences
Size
- Shed Home: No practical size limit. We build from 100m² to 500m²+. Limited only by your land and budget.
- Granny Flat: Typically capped at 60m² (varies by state). This is a hard planning limit in most councils.
Location
- Shed Home: Best suited to rural, semi-rural, or large lot residential properties. You need land — these aren’t suburban builds.
- Granny Flat: Designed for existing suburban residential blocks. Most councils require a minimum lot size (usually 450m²+).
Council Approval
- Shed Home: Full DA and building approval required, same as any residential dwelling. Engineering certification included with every Shedz kit.
- Granny Flat: May qualify for CDC (Complying Development) in some states, making approval faster. But size and design restrictions are strict.
Cost
- Shed Home: Steel kit from approximately $50,000-$150,000+ depending on size and specifications. Full fitout (electrical, plumbing, insulation, interior) is additional — budget $1,500-$2,500/m² for a complete build.
- Granny Flat: Typically $80,000-$200,000+ for a complete turn-key build including all services and fitout.
The Bottom Line
A shed home gives you a full-sized residential dwelling on rural land with no size restrictions. A granny flat gives you a small secondary dwelling on an existing suburban block. They solve completely different problems.
When a Shed Home Makes Sense
- You own acreage or a large rural/semi-rural block
- You want a primary residence, not a secondary dwelling
- You need more than 60m² of living space
- You want a combined living and farm workspace
- You’re building in a cyclone-rated region and need engineered construction
When a Granny Flat Makes Sense
- You have a suburban residential block with enough space
- You need a small self-contained dwelling (60m² or less)
- You want rental income from a secondary dwelling
- You’re housing a family member on your existing property
