NSW South Coast Council’s Game-Changing Tiny Homes Trial
A groundbreaking initiative in Shellharbour, New South Wales, could redefine how Australians think about affordable housing.
The local council’s two-year pilot program for mobile tiny homes is paving the way for a national framework that makes small, movable dwellings easier to approve and install.
A Step Toward Affordable and Flexible Living
Navigating Australia’s patchwork of rules for tiny homes has long been a challenge.
Shellharbour Council’s new planning proposal aims to change that by allowing residents to install mobile homes on existing properties without requiring a development application—as long as they meet clear safety and infrastructure conditions.
Under the proposed rules, these homes must:
Meet fire and construction safety standards,
Maintain minimum setbacks from property boundaries, and
Connect to essential utilities like water and power.
This marks a potential breakthrough for those seeking affordable, low-impact housing, especially in areas struggling with the ongoing housing crisis.
What the Council Says
Mayor Chris Homer said the goal is to “simplify the process” of placing tiny homes on private land while maintaining essential planning requirements.
“Tiny homes provide a flexible, fast, lower-cost option that increases housing choices for community and key workers,”
Homer explained.
“This trial reflects our commitment to exploring innovative solutions to meet the evolving needs of the housing crisis.”
The plan still requires state government approval, including a 28-day public exhibition period, before the pilot can officially launch.
Industry Leaders Support Local Innovation
The Real Estate Institute of NSW (REINSW) has welcomed the Shellharbour trial, calling it an example of how local governments can take proactive steps to ease the housing shortage.
REINSW CEO Tim McKibbin praised the initiative, saying:
“This is an example of a local Council understanding it has an important role to play for its community and taking innovative action.”
McKibbin added that while tiny homes won’t suit everyone, they offer much-needed diversity in housing supply, especially for renters and those facing housing insecurity.
A Possible Model for the Future
If successful, Shellharbour’s pilot could serve as a blueprint for councils across Australia to streamline housing approvals and foster sustainable living solutions.
It reflects a broader movement toward flexible housing models that accommodate changing family structures, economic realities, and environmental considerations.
As McKibbin noted:
“Prohibitive planning regimes are the enemy of new housing. Innovative planning action is what all councils should be taking.”
