Tiny houses obliterate Great Australian Dream

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As Australia’s house prices surge towards fresh all-time highs and traditional housing becomes increasingly unaffordable, “tiny houses” are once again being touted as a fake solution.

The latest example comes from the Daily Telegraph’s Aidan Devine, who has penned a triumphant propaganda piece on “why more Aussies are joining the tiny house revolution”:

The off-the-grid houses, envisaged as an alternative to the rat race and McMansion living, have been getting so popular builders are flexing their creative muscles to make their very small houses standout.

Re-use centre The Bower manager Guido Verbist, who runs workshops on how to build tiny houses, said the concept has been steadily gaining traction over the past five to six years.

“There were hardly any of them a few years ago but the (concept) is huge now,” he said.

“It started as a way to take a break from modern living, to see how you can go with less things, less space … expensive house prices were probably a part of it.

“Now it’s also become a way for people to express their creativity so there are some interesting designs”…

“I find there are many reasons why people are going to tiny houses, especially those on wheels … there’s the financial reasons as (it’s) an inexpensive way to purchase your own home…

“All you need is somewhere to put it,” Mr Verbsit said…

“I think tiny houses are here to stay. People like the freedom. It’s a way to get closer to nature.”

Take a look at some of the photos used in the puff piece.

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There’s the purportedly happy family living in a “gypsy wagon”:

And here’s a converted aircraft:

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Now tell me how these “tiny houses” are any different to caravans, which have existed in Australia for generations:

That’s right. Dotted throughout Australia you will find caravan parks providing long-term leases to the poorest and most vulnerable members of society. And just like these “tiny houses”, there is no actual home ownership attached, since there is no land and no title. They are effectively one rung above being homeless.

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Basically, “tiny houses” are caravans rebranded to make them sound more attractive. And now they are being used as propaganda to replace the Great Australian Dream of home ownership.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.