Owning their own home is a dream for many young Australians but it appears most believe this dream is out of reach.
A study conducted in late September by CoreLogic found that 90% of millennials are concerned they may never own a home.
These concerns are driven by rising house prices with the median price of a home in Australia increasing over the September quarter by 2.7% to a staggering $770,000 according to a Domain House Price Report.
Many home sellers are confident this trend will continue with 68% of them expecting the prices to continue rising over the coming months.
So, what hopes could young prospective home buyers have in such a competitive market?
Tiny Homes Perth owner Simon Joiner believes that a tiny house may be the solution to those afraid of the $770,000 price tag.
“Tradition tells us that 180 odd square metres is the traditional home but also there’s a half a million-price tag, so these days less and less are wanting that half a million plus mortgage so they are looking at alternatives,” Mr Joiner said.
He believes a tiny house may be a good stepping stone for young people looking to enter the housing market whether they want a permanent dwelling or simply a place to live while saving for a deposit to build a house.
“As a rule of thumb, you can expect to pay around 65 to 95 thousand for a completed tiny home.”
Mr Joiner believes more and more people are becoming interested in tiny homes and he has seen a shift in how people view the homes.
“People’s general attitudes are changing, one from how could you live in something so small to the next year going wow look what you’ve done with the space to then three saying can I have more information.”
Tiny houses however aren’t only for living in and can be used as a stream of income by renting them out.
Hidden Cabins’ owner Ash Banford plans to use tiny houses as a cheaper and mobile alternative to traditional lodgings for vacationers.
“The plan is to have a bunch of these tiny homes in a sort of community for people to stay in,” she said.
“This is my first time going into a kind of rental business and tiny houses seemed a perfect fit as they’re cheap to build and you can change locations.”
So whether you’re looking to live in one of these homes or to rent them out, tiny houses could be a cheap alternative in an increasingly expensive market.