Australians desperate for affordable housing are turning to alternative home solutions with one provider claiming they now field a call every 48 seconds.
Australia’s housing crisis remains ongoing, and with every Aussie needing a place to call home while affordability constrains household budgets, the demand for more cost-effective housing alternatives is growing.
Nationally, if you are living in a capital city, the median home price is more than $1 million, while in Australia’s most expensive city, Sydney, the average home will set you back more than $1.255m, according to recent PropTrack data.
Even those looking for cost effective housing in rural Australia are facing a median of $707,000. At the same time renters are paying more than ever with a typical rental costing $650 per week nationally, an increase of 4.8 per cent in the 12 months from January 2025.
Tiny home supplier Elsewhere Pods is experiencing a huge surge following the launch of its national partnership with Bunnings and the company says it now fields a phone call inquiry every 48 seconds.
Two tiny homes nestled in The Central Coast home.
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The DIY backyard studio measuring 2.7m x 2.4m and larger 4m x 2.4m granny flat version, which could be constructed in a weekend, has become one of Bunnings’ top searched items.
The surge in demand marks a dramatic shift for the fast-growing start-up, which has gone from receiving 10 to 15 inquiries a day to more than 500 calls a day since the deal was announced.
Founder Matt Decarne said the response has shocked them, exceeding even the company’s operational forecasts, driving interest from investors and prompting immediate expansion plans.
One of the biggest driving forces is Australia’s dire need for affordable housing.
“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,” Mr Decarne said.
Matt Decarne founder of Elsewhere Pods that have been inundated with requests since parterning with Bunnings.
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Martjin Burns and his family decided to leave Sydney after being unable to afford a home – they eventually moved to The Central Coast to purchase a small house on land bordering the Bouddi National Park.
Previously, Mr Burns was renting a small house in Erskineville for $800 per week, which he said had gone up even more since he lived there three years ago.
“I feel that the housing market in Australia is getting out of control and is becoming even more inaccessible than it used to be,” Mr Burns said.
Due to their new property being in a fire zone, there was a lot of red tape to expand their home using traditional methods. Adding two Elsewhere Pods meant the family’s plan fell into a different building category that avoided the fire zone constraints.
Mr Burns said the pods have been a game-changer for his family and he’d even recommended them to others in his area.
“The pods give us the ability for our family members to do their own thing in their own area such as practising music, doing homework, making phone calls, rather than all of us trying to do this in one small house with no separate spaces,” Mr Burns said.
“The pods are nestled into the landscape beautifully which gives us a close connection to the bush land we live on.
Martjin Burns at his Central Coast property.
“The extensive windows provide views in all directions and the stylish design of the pods makes them sit beautifully in the landscape.”
Mr Burns said the two pods cost just $205,276 adding an extra 35 sqm of floorspace, saving the family around $600,000-$800,000 if they went down the traditional building route.
“One thing that amazed me the most about the process with Elsewhere Pods is that the disruption during construction is minimal compared to traditional building methods. They built the two pods in just under one week,” he said.
Martjin Burns two pods on his property expanding his home’s floor space by 35 sqm.
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The studios and small homes start from around $31,000 up to their 8m home costing $101,000.
“We always believed a simpler, cost-effective option for eco-luxe energy-efficient homes was about to have its mainstream moment, but the scale and speed of this response has been extraordinary,” Mr Decarne said.
“We’re seeing first-home buyers, downsizers, regional landowners and investors all reaching out to us and it reinforces that housing innovation must play a central role in addressing affordability, supply constraints and lifestyle flexibility.”
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