Whenever debate rages about housing affordability in Australia, you inevitably see commentators and vested interests push so-called “tiny homes” as a cure for young people locked-out of the housing market.
The latest example comes via Realestate.com.au, which is touting tiny homes as small as only 10 square metres for “buyers seeking minimalist lifestyles”:
Australian Tiny Homes Association (ATHA) president Janine Strachan said the property type was a “housing solution for a diverse range of people” [Strachan said]…
“It puts more housing and rentals on the market, helping people stay in communities they love but can’t afford anymore”…
“There is a huge demand for and interest in tiny homes and the communities that surround it”…
Ms Barrett estimated that more than 600 tiny homes were being sold per month…
She also said that the “cost of buying them had increased some 50 per cent in the same time frame,” with current prices ranging from $70,000-$150,000.
“A cheap one is around $70,000, but something with a bit of luxury that has all the bells and whistles is around $130,000. You could also build your own for under $150,000”.
The definition of real estate “is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges”.
Tiny homes by definition are not real estate, since they do not include the land, which is the most expensive component. They are basically glorified caravans or mobile homes.
Dotted throughout Australia and the United States are caravan parks and trailer parks providing long-term leases to the poorest and most marginalised in society. These poor souls are derogatorily called “trailer trash” in the United States for this very reason.
You won’t find any actual home ownership or real estate at these parks, because there is no land nor title.
Tiny homes are a marketing gimmick used to re-brand something old and depressing – namely caravan or trailer parks used to house the poor and vulnerable – into something that is exciting and fresh. Throw the terms “minimalist” and “sustainable living” into mix and you have the perfect con to trick the public into believing that tiny homes are a genuine solution to Australia’s busted housing system.
But if tiny homes are such a great solution to Australia’s housing affordability problems, then why haven’t Aussies rushed to live in caravan parks?
The fact that caravan parks are used to provide emergency accommodation to the poor shows the real efficacy of tiny home living. Sure, it’s better than being homeless, but not much else.
Sadly, in the housing narco state of Australia, it’s far easier to wax lyrical about gimmicks like tiny homes than to undertake genuine housing reforms that treat the affordability problem at its source.
