Australia is experiencing a housing crisis. Prime Ministers have run on this very theme. It is intricately wound into the affordability issues that every day Australians are struggling with, and seeking solutions to.
Oscar is characteristic of the majority of Australians who who want to buy a home instead of paying rent – an expense that goes up every time the RBA announce a rate rise, in addition to calendarised increases. Australians have long held it as a birthright of sorts – the Australian dream is to own a home of our own.
Oscar is not able to buy a home of his own however – he’s priced out of the property market, just as many Australians are. His borrowing capacity falls within the $300K to $500K range. He knows it’s way below the median price of traditional homes which is $900K and rising.
But the tiny home movement may change things for Oscar.
The prices of tiny homes in Perth, for example, range from $75K to $100K. Even if he has professional builders work on his beautiful tiny home with custom rooms, doors, and windows, it will still cost him less for the whole project compared to purchasing a basic traditional home.
This makes tiny living a perfect solution for Oscar’s housing problem, as well as that of many budget-conscious Australians like him. In fact, our recent survey’s results support the very idea.
75% of Australians Would Consider Buying Tiny Houses
“How much do tiny homes cost?”
That’s the question many Australians think of when talking about the idea of tiny home ownership.
Typically, a tiny house costs just $100K, which is why the majority of survey participants say they would immediately pay for it. It’s understandable since the full price of that new tiny house is the close to half what the average 20% deposit for a traditional house at today’s median would run. Considering the range of custom and turn key solutions, there’s no limit to range, innovation and the one thing most consumers are seeking, lower costs overall.
Tiny Living Means Life Upgrading
These days, many Australians want to live simply, even embrace the minimalist lifestyle. Home ownership is still a vision they want to turn into a reality, but they’re more practical about it now.
The Shift to Simplicity
They no longer aspire for huge, spacious mansions. Or a house with so many rooms that family members don’t even get to see each other every day. Instead, they’re now preferring tiny houses that are not just affordable but also suit their needs and desired simpler lifestyles.
A More Flexible Life
Plus, tiny homes can also offer them greater flexibility. If they get the urge to move to another location or want a change in environment, which is a growing trend with the rise of remote work and desire for living outside major cities, it’s easier for them to do so.
Sustainability is also a major concern for the typical Australian, and tiny homes hit the mark. The whole process of building a tiny house requires fewer resources due to the smaller footprint. Meanwhile, living in a tiny home requires less energy and other resources and leads to less waste.
For Many Australians, Tiny Homes Can Lead to Financial Freedom
Tiny homes in Australia also mean lower ongoing expenses. After all, a family needs fewer resources to make their home liveable—whether it’s a granny flat, container home, or a custom build. Plus, a tiny house comes with a lower mortgage. Even sophisticated, tiny homes in Brisbane with custom designs mean smaller debts.
And the money Australians save with their tiny houses?
That’s money they can use to finance their dream lifestyles, save for the future, or even reduce their retirement timeline. Something not as easy to do when they own, or even rent, traditional houses with large mortgages.
The Quality of Tiny Homes Generally Meets Australian Standards
These days, tiny houses made by professional builders are synonymous with quality craftsmanship.
There are over 300 tiny home builders all over Australia now, which means the competition for business is greater than ever before.
Plus, there are a number of tiny home Australia associations that provide consumers with regulatory insights and guidance.
Whether it’s the Australian Tiny House Association, the Tiny Home Victoria association or the Tiny Homes Foundation of NSW, each of these bodies can assist consumers when it comes to navigating choice, as well as the seemingly inconsistent positions that local councils across Australia tend to hold.
Regulations for tiny homes Brisbane and for a tiny home Melbourne; bodies that support and evangelise for this ever growing movement.
And they all know that the best way to win customers over is to become a highly recommended builder of tiny houses. Someone who oversees even the smallest detail throughout the building process- from planning to delivery – and construct tiny houses that can withstand even the harshest environments in Australia.
Tiny Homes: A Perfect Solution. So what’s holding Australia back?
The tiny home movement seems to solve many problems involving the housing crisis in Australia. Yet many of our survey’s respondents report two key factors preventing them from buying a new tiny home: finance and council regulations.
The Financing Problem Australians Face
Tiny houses are affordable, but bank policies complicate the process of buying one.
To begin with, many tiny homes are considered movable, even portable, and banks don’t treat such houses as real property. So, it’s harder to secure a mortgage for it. Many Australians end up getting personal loans to secure their new tiny home. And such loans typically come with higher interest rates.
Councils’ Regulations are Inconsistent
68% of survey respondents shared that the red tape involved is the biggest factor stopping them from buying tiny houses. They shared that the different rules set by different councils produce the biggest headache. Understanding that there are organisations and associations educating and evangelising for the tiny homes movement and appropriate and consistent regulations can only be read as a positive.
Further complicating things is the fact that, in general, council regulations aren’t particularly easy to follow.
Regulations for Tiny Homes in Victoria vs. New South Wales – An Example
To understand the challenges involving inconsistent council rules in buying a tiny new home, take the case of policies in Victoria and NSW.
Councils in NSW classify tiny homes as caravans, while those in Victoria treat them like how they treat granny flats. Plus, Victoria’s councils also offer greater support and a more straightforward approach for approval compared to NSW.
How to Solve Australia’s Housing Crisis With Tiny Homes
It’s clear that the demand for tiny homes in Australia is there – there are over 300 Australian businesses dedicated to producing liveable spaces that meet the tiny homes criteria. But what’s slowing the purchase is primarily the inconsistent regulations—from banks and especially to local councils.
Councils in Victoria set a precedent in making tiny home buying more straightforward.
If other councils in Australia follow suit, and eventually a national framework is introduced, more Australians will likely be persuaded to buy tiny houses. The housing crisis is keeping Australians locked out of one of our most universal goal – the dream of owning a home of our home.
