Granny flats. Minor dwellings. Secondary units. Whatever you call them, these compact homes have long had a place in Kiwi backyards—and their popularity is only growing.
With recent and upcoming legislative changes making it easier to build a minor dwelling in New Zealand, more homeowners and investors are exploring the potential. But myths still persist. At Keith Hay Homes, we’ve helped thousands of Kiwis design and build minor dwellings that work with their land, budget, and life. Here, we bust the most common misconceptions.
Myth 1: “You can only build a granny flat for your elderly parents.”
False. While the term “granny flat” suggests housing for ageing parents, minor dwellings serve a wide range of needs:
- Teenagers seeking independence
- Adult children saving for a first home
- Short-term rental income (e.g. Airbnb)
- Offices, studios, or additional living space
It’s your land. You get to decide how to use it.
Myth 2: “You need a massive section to build one.”
Not anymore. Thanks to urban intensification and changes to local planning rules, building a minor dwelling is now a real option on many residential sites across New Zealand.
Keith Hay Homes offers a free Desktop Site Analysis to check if your property is suitable. You’ll save time and avoid guesswork.
Myth 3: “Granny flats don’t add value to your property.”
Actually, they do. A self-contained minor dwelling can:
- Increase your property’s resale value
- Open up rental income potential
- Provide flexibility for future family use
In tight housing markets, these advantages can make a big difference.
Myth 4: “They’re all cookie-cutter designs.”
Not with us. Keith Hay Homes offers a range of customisable designs to suit your...



