'Fonzie flats' could forever change how we live

It would seem that joyous sitcom Happy Days and the grim Aussie housing market have little common and yet, a flat named after an iconic TV character could be part-way a solution to the affordability crisis.

An economist is calling on more Aussies to become IMBY’s (In My BackYard) and support the construction of different types of homes – among those is the so-called Fonzie flat.

These compact but comfy units are built atop a garage, just like Henry Winkler’s character moved into in the sitcom Happy Days, set in 1950’s and 60’s Milwaukee.

More varied types of homes in Australia, along with rental agreements that span two or three years, and rent-to-build schemes, are among the approaches which economist Leigh Holford is urging the federal and state governments to consider.

Holford is an economics principal at Hatch, a global engineering, urban planning and development firm. Hatch has paired with community housing provider Haven Home Safe on developing properties known in the industry as Accessory Dwelling Units.

Around then water cooler, most Aussies will know ADU’s colloquially as granny flats and, now, Fonzie flats.

A granny flat is a standalone construction but a Fonzie flat is atop a garage or workshop.

Some of the best Aussie examples of Fonzie flats have been featured on The Block, when teams throughout the seasons have added self-contained studios above garages.

This enabled extra accommodation on typically-sized, inner-suburban sites. Crews successfully built up when they could not build out.

“While there are regulations governing their construction, there has been growing interest in promoting IMBY development to increase housing affordability and address urban sprawl and sustainable development,” Holford said in a statement.

“They are an effective solution to boosting affordable rental housing, particularly in parts of the country where critical community workers are needed.”

Data from Hatch reveals that ADU approvals have taken off in major US cities including Chicago, Miami and Seattle, and parts of the state of Montana. There, rubberstamps given to residents to build granny and Fonzie flats jumped 25 per cent, according to 2022 data, in response to their own critical housing shortages.

In Victoria, the red tape around building a granny flat is now more flacid.

Under new rules, a small second home up to 60 square metres does not need a planning permit, so long as there are no flooding or environment dangers, or existing planning controls in place.

Despite the fresh ease of building a granny flat in some parts of Australia, there are extra steps that can be taken at a financial policy and development level, Holford said, to determine just how useful they can be.

He said “more needs to be done to relax restrictions for parking and site setbacks to truly unleash their potential”.

“We are urging planners, governments and developers to rethink what housing looks like – and we can learn from what’s working well overseas. Internationally, for instance, it’s common to have two-to-three year rental agreements,” he said.

Haven Home Safe’s CEO Trudi Ray is keen for more Aussies to embrace varied styles of properties in their neighbourhood.

“The world we live in is different and alongside a greater need for housing supply is a greater need for different housing types such as IMBYs alongside new ownership models and financing mechanisms,” she said in the statement.

The call from IMBYs to unite comes after high-profile builder Rhys Urlich revealed a chic new type of build that meet timeline and budget restraints.

His company Shed House Australia has kit homes for as little as $42,000 and these, through to larger shed frames, are based on stylish design principals.