Tiny houses could add to housing mix amid affordability crisis, but legal changes needed: experts

Tiny houses could play a greater role in the nation’s housing mix and offer an alternative to those struggling with high prices and rents if small legal changes were introduced, experts say.

Although tiny houses – micro-dwellings that are often set on wheels and cleverly designed to maximise space – have drawn plenty of enthusiasm, potential residents can be put off by the legal grey area they occupy.

The dwellings are not in themselves a solution to the housing affordability crisis, and their proponents freely admit tiny living is not for everyone. But they have the potential to house people at risk of homelessness, seniors looking for a granny-flat equivalent next to family, young people facing high rents or house prices, women going through a separation late in life, or minimalists looking to tread more lightly on the earth.

A nationally accepted definition for tiny houses on wheels is needed to distinguish them from both caravans and traditional dwellings, according to a submission by the Australian Tiny House Association to the federal government’s Inquiry into housing affordability and supply.

States and councils should develop a tiny-house parking permit valid for two to 10 years with the potential to extend, and change policies that prevent non-related people from living in a secondary dwelling on a block, the group said.

At the moment, there is not a lot of acceptance of tiny homes as secondary dwellings, ATHA president Janine Strachan told Domain.

A long-term permit, as opposed to the short permits on offer for camping, would allow for a formal agreement between a landholder and a tiny house user, as well as the work to connect water and power to a tiny house, she said.

“It’s about rejecting this NIMBY syndrome we see around,” said Ms Strachan, who also runs the Tiny House Solutions business.

“If I don’t want a tiny house in my backyard I won’t have one, but why should I say to my next-door neighbour, you’ve got a big driveway and a big backyard but I don’t want you to put a tiny house there?”

Some residents might want a forever tiny home to live a minimalist life, but many others could use it as a transition to avoid homelessness or save up to buy property, she said.

“People can’t afford to get into the rental market, let alone … get into the housing market to buy,” she said.

Tiny houses usually retail for between $60,000 and $150,000, but some choose to owner-build which can cut costs, the ATHA said in its submission.

Director of the Cities Research Institute at Griffith University, Paul Burton, said tiny houses can make a contribution, but there are no silver bullets to addressing housing affordability.

“For those who want to do it, it would be good if the regulatory regime and planning regimes were a bit easier,” he said.

“In some cases, [councils] deal with them quite well and quite thoughtfully. In other cases, you’d think they’re dealing with something that spells the end of civilisation.”

This could allow a greater range of housing choices beyond three-bedroom suburban houses or inner-city apartments, he said.

ESC Consulting director Valerie Bares said that, with some legal changes, tiny houses could become the bottom rung of the housing ladder for many young people.

At a recent tiny homes expo, she was approached by a range of people looking for accommodation for their young adult offspring, elderly parents or friends, but many were put off by the legal grey zone that could vary between council areas.

“All these people are going, ‘Is it legal? Where can I park it?’” she said. “Because it’s not a straight answer, people are not willing to take the chance.”

Ms Bares, who consults on sustainability in planning and is running a petition for tiny-house acceptance in Queensland law, said tiny houses were not expressly prohibited in the Brisbane City Council area but dwellers risked being moved on.

“That kind of uncertainty, a lot of people don’t want that, they’re just looking for a place to live,” she said. “They want to do it peacefully, without falling foul of the council or any laws.”