Australia’s most iconic hardware store is making a monumental leap from hammers and nails to helping build entire homes, as it throws its weight behind a burgeoning solution to the nation’s housing affordability crisis.
Bunnings Warehouse has partnered with an innovative Aussie start-up to offer compact, modular pod houses designed for backyards, many of which cleverly bypass the need for traditional building permits.
The retailer now lists Elsewhere Pods’ flatpack dwellings online and through its in‑store Special Orders desk, with two models on offer: a 2.7m x 2.4m pod priced at $26,100 and a larger 4m x 2.4m studio at $42,900.
Bunnings says the units can be assembled in as little as two days, positioning the products as DIY-friendly solutions that can serve as crisis accommodation, home offices or teenage retreats.
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The hardware giant is now selling backyard pod homes in a growing national trend, starting at $26,100. Source: Bunnings.
The pods can play a part as crisis accomodation, a workspace or a teenage retreat. Source: Bunnings
Bunnings also sells a larger 4m x 2.4m studio at $42,900. Source: Elsewhere Pods
Elsewhere Pods, which announced the Bunnings partnership in September and quietly launched with the retailer last month, reports more than $9 million in sales as demand rises for compact, modular housing.
Founder Matt Decarne calls the pods “the ultimate DIY” backyard project and argues housing innovation must be part of the solution to Australia’s affordability squeeze.
The company says some tiny and modular dwellings, including several of its designs, may not trigger planning or building approvals, which has become a major drawcard for buyers seeking speed and simplicity.
However, rules vary by council and state with buyers urged to check local requirements before building.
Bunnings’ entry comes amid a broader pivot towards prefabricated and kit-built housing. Major lenders such as Commonwealth Bank have been warming to prefab construction, while kit home manufacturers have multiplied across the country.
Elsewhere pods founder Matt Decarne inside the larger granny flat product. (Source: Supplied)
Modular flatpack builds are projected to grow by around 7 per cent a year to hit $18 billion by 2030. Source: Elsewhere Pods
According to Yahoo Fiance, one Sydney couple, Chris and Beau, are constructing a three‑bedroom kit home on Russell Island in Queensland, aiming to complete the entire build for around $150,000 after buying the kit for just over $50,000.
Others, like Melbourne mum Maria Hatzi, are opting for turnkey granny flats, with her two‑bedroom build – complete with kitchen, living area, bathroom and laundry – costing about $250,000 to give her teenage son a stepping stone towards home ownership.
State governments have been stripping back red tape on secondary dwellings, with Queensland and Victoria among those relaxing rules.
A recent Housing Industry Association survey found builders expect to deliver roughly 10 times more granny flats this year than in 2022.
Market forecasters also see momentum building.
The pods are an affordable solution to enter the housing market on a budget. Source: Elsewhere Pods
Tiny but mighty! Source: Elsewhere Pods
Analysis from Mordor Intelligence suggests Australia’s prefabricated buildings market – which includes modular flatpack construction – will grow by about 7 per cent annually to reach $18 billion by 2030.
Elsewhere Pods says nearly a third of its sales come from off‑grid accommodation for eco-tourism, underlining the appeal of lightweight, rapidly deployable structures for regional destinations.
“It’s difficult for the industry to know exactly how many people are living in tiny or modular homes, because many tiny homes including some of our designs don’t trigger planning or building approvals which is a big drawcard,” he told Yahoo Finance.
“We built Elsewhere Pods to be more than just a house. It’s about security, stability and choice, whether you’re recovering from disaster, downsizing, investing in a rental, or simply want a beautiful place to call home.”
With Bunnings now backing the concept at scale, Australia’s best‑known hardware brand has effectively entered the business of building houses, signalling the mainstreaming of tiny and modular living across the country.
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