Aussies are turning to flatpack homes in a bid to slash more than $500,000 off the cost of getting into the property market, as soaring house prices force buyers to think smaller.
New research shows more than half would consider living in a prefab or pod-style home to get a foot on the property ladder.
According to PropTrack, the national median home price hit $903,000 in June, rising to $1,005,000 across the capital cities.
By comparison, Elsewhere Pods’ smallest tiny home option, the 4m Micro home, starts at $50,000, while larger pod-style homes suited to family living start at $208,584.50.
Even after adding the cost of land, the savings can still be enormous.
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The latest HIA residential land report shows the median residential lot across the capital cities now costs $437,855, while the average allotment across regional centres sells for $295,160.
That means buyers could potentially save well over $500,000 by choosing a flatpack or prefab home over a traditional property at the national median price.
Source: Money.com.au
Money.com.au’s nationally representative survey of more than 1000 Australians found 54 per cent would consider buying or living in a pod-style or prefab home, including flatpack DIY models sold through retailers such as Bunnings.
Gen X was the generation most open to the idea, with 60 per cent willing to embrace flatpack housing as a pathway to homeownership.
Source: Money.com.au
Millennials followed at 56 per cent, while Gen Z and Baby Boomers were both at 49 per cent.
The findings come as tiny home supplier Elsewhere Pods reports a huge surge in interest following the launch of its national partnership with Bunnings, with the company fielding phone inquiries every 48 seconds in April.
Money.com.au property expert Nick Burgess said many Australians were now looking beyond the traditional freestanding house because the financial burden had become too great.
“Many Australians in their 30s, 40s and 50s are realising that owning a smaller, more affordable home may be a better financial outcome than stretching themselves to buy or build a traditional house,” he said.
“These are Australians in their peak home-buying and family-raising years, and many are increasingly open to prefab or pod-style homes as a practical middle ground.
“It’s either because it’s more affordable than brick and mortar or because they don’t want to take on a huge mortgage over 30 years like some of their peers.”
Buying land and setting up a pod-style home could save future homeowners thousands of dollars.
The research found flatpack housing had the strongest appeal among lower-income households, with 63 per cent of those earning $50,000 to $99,999 saying they would consider it.
That was the highest of any income bracket and well above the 45 per cent recorded among households earning $150,000 to $199,999.
Even so, Australians still have clear concerns about compact prefab living.
Limited space was the biggest barrier, nominated by 46 per cent of respondents, while 41 per cent said they had concerns about build quality and durability.
Around 28 per cent worried about lifestyle and comfort, and 27 per cent were concerned about council approvals or zoning restrictions.
Another 20 per cent questioned resale value, while only 4 per cent said social stigma was holding them back.
Elsewhere Pods, Bunnings partnership fuels surge in flatpack homes
Elsewhere Pods founder Matt Decarne said the level of demand had exceeded the company’s own expectations and let to the hiring of more sale’s staff.
“One of the biggest driving forces is Australia’s dire need for affordable housing,” he said.
“Australians are searching for smarter, faster and more affordable housing solutions – from backyard studios and granny flats to eco-tourism accommodation and full-time residences.”
Victorians in particular are drawn to pod-style living, accounting for 35 per cent of buyers.
“Then we’re about 30 per cent in New South Wales, 15 per cent to 20 per cent in Queensland and then the rest of the states kind of make up the difference,” Mr Decarne said.
Matt Decarne founder of Elsewhere Pods that have been inundated with requests since partnering with Bunnings.
“But what we’re seeing at the moment is a pretty dramatic overrepresentation in Western Australia and that’s partly due to the fact that there are not that many builders over there … and it’s a similar story for Tasmania where it’s really difficult to get building materials over there.”
The company’s flagship product is its 8m tiny home which sells for around $115,000 delivered and installed.
“We find that this is just a really nice sweet spot between having enough space and functionality that you could potentially live in it.”
Looking ahead, Mr Decarne said the company was in talks with Bunnings to roll out bigger showrooms to allow customers to feel and see the entire range of flatpack homes.
“At the moment we’re starting to roll out our displays around the country. We had the first one installed at Narrie Warren. We got one that just gone into Robina on the Gold Coast and Castle Hill in Sydney will be next in the next couple of weeks,” he said.
Pod home prices range between $50,000 and $208,584.50.
“We have a long term vision to roll out our full suite of granny flats and tiny homes within Bunnings but we’re just working with them on ensuring that we tick all the regulatory and compliances boxes.”
Bunnings Director of Merchandise, Cam Rist said evolving the company’s’s range of products, while remaining responsive to the needs of our customers, was at the core of the retailer’s DNA.
“Our current selection of outdoor pods reflects our commitment to offering customers more choice in this growing category,” he said.
“We’ll continue to review opportunities in this space to ensure we’re meeting customer demands.”
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