Is going tiny a solution for Australia's housing crisis?

Like a lot of millennials who have a complicated relationship with homeownership, I am so drawn to the prospect of owning a tiny house and living off-grid for less than $100,000. So, could tiny homes be a straight answer to the affordable housing crisis? Let’s find out! 

In case you’re wondering what they are? Tiny houses are different from caravans in that they have a similar aesthetic to a larger house and use traditional building materials. Most tiny houses are built on trailers with wheels attached for mobility. Tiny houses can be completely off-grid with the use of solar panels and collected rainwater tanks to maintain electricity and water supply. 

The tiny house movement has its roots in the United States in the 1990s. Since then, it has been sweeping across the globe, encouraging people to convert to small-scale living and live in a more environmentally conscious way. A late 2020 survey found that 56% of Americans would consider living in a tiny home. 

Tiny houses also make excellent short-stay accommodations which generate high rental yields. Many tiny house investors are renting out their tiny adobes on AirBnB and Riparide to supplement their income and pay off their mortgages.

Tiny homes and the housing ladder

It takes first home buyers up to 15 years to save for a 20% home loan deposit – only for prices to keep rising. That’s probably what makes two-thirds of Australians think young people don’t have a chance to own a property anymore (hence the label “Generation Rent”). 

Therefore, many are turning to innovative alternatives like buying a piece of land to build a drag-and-drop kind of home or building a tiny house on wheels. 

People desire something cheaper, something tiny. This lifestyle attracts not only young single people in their 20s, but also people in their 30s who are just getting married or even people in their 50s looking to downsize. 

This movement taps into the human need to live more simply and sustainably, not be bridled with a mortgage and have more time to pursue the things they are passionate about in life. 

Complexities surrounding tiny spaces 

However, the proliferation of this movement across the globe has not been without criticism. 

Many people think it’s a riskier route, due to an unproven resell market. It’s not easy to sell tiny homes since they usually depreciate in value. It’s not about a big

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