Don't need to go big to go home: Australia is turning to sustainable 'tiny houses' to fix their housing crisis!

Australia's housing market, like many other major economies around the world, is facing a crisis. Soaring rents and home prices, increasing mortgage stress, and a growing population has resulted in a dire need for affordable housing, with hundreds of thousands of Australians struggling to find a place to live.

Instead of depending on massive policy changes to bring this boiling pot down to a simmer, Australia has decided to work on something tinier: investing in smaller houses.

Tiny houses are becoming an increasingly popular choice for the urban resident. Often fueled by a desire for simplicity, sustainability, and affordability, these small dwellings, typically under 400 square feet, offer a more minimalist lifestyle with a smaller environmental footprint. While these have already become popular in Japan, the US and other developed countries, Australia has lagged behind due to restrictive planning and housing regulations.

To make these more accessible to their citizens, a Conversation article reports that some Australian local councils are streamlining the process of owning a micro-house. In December 2022, the Shire of Esperance became the first in Australia to allow tiny houses as permanent dwellings. Since then, other councils have followed suit, making it easier to own and live in a tiny house by removing permit requirements and creating policies for tiny house communities.

Rather than just catering to the growing minimalism trend, tiny houses actually offer a number of advantages over traditional housing. They can be built quickly and cheaply, with construction costs typically ranging from A$80,000 to A$160,000 — about a tenth of what it might normally fetch in Australian capital cities. And while it might take 4-12 months to build a typical Australian house, it only takes about four weeks to commercially build a micro-home, the Conversation piece explains.

Furthermore, their smaller size reduces energy and material consumption, leading to a smaller environmental footprint. Many tiny houses incorporate features like rainwater tanks, composting toilets, and solar panels, further minimising their impact on the environment and counting towards Australia's net-zero carbon emission target by 2050.

While tiny houses may not be suitable for every household, they offer a valuable addition to Australia's housing options. As more councils embrace them, tiny houses can help address the housing crisis, provide affordable living options, and promote sustainable living practices. With a greater lens on developed nations to reduce their carbon emissions, this could certainly be one of the avenues with which their emission targets could be achieved.