What is the Average Price of a Tiny Home & Why Invest in One?


House prices have continued to rise for many years now, and although they may be on the turn, many still feel that their dreams of homeownership are out of reach. For families and investors looking for affordable real estate opportunities in this current climate, the Tiny Home Movement is worth considering. If you can’t stomach the thought of a huge home loan, a tiny home might be a good alternative.  

The average price of a tiny home in New Zealand at the time of writing is around $150,000. Depending on your budget and home essentials, tiny homes can be anywhere between $50,000 to $250,000+.

Though you need land to park yourself on, a tiny home makes raising personal finance in NZ’s housing market seem like a more realistic/attainable goal. Explore the benefits of tiny home living below to determine if it’s the right investment for you.

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According to the New Zealand Tiny House Association, a tiny home is around 22 square metres, not much larger than some bedrooms. Unlike your standard bedroom, tiny homes often include a loft space or mezzanine bedroom.

Though it sounds small (it is a tiny home, after all), most spaces are well-designed to maximise efficiency and convenience. A home that is safe, comfortable, and caters to your lifestyle is important. When hunting for a new home, it’s also best to check that the designs you’re considering meet all building requirements for a Tiny Home, specific to the area you’re in, as requirements can vary per region. They’ll also need to match up with the New Zealand Building Code. It can get complicated, so make sure to talk through your intended use with the builder/designer in question as well as a lawyer before signing on the dotted line.



There are multiple benefits to investing in a tiny home and embracing living small.

1. Cost-Effective

If securing a home loan or personal finance in NZ is an issue, the price point of a tiny home is worth considering. The average price of a tiny home is significantly less than a standard home, making your home loan more affordable. However, it’s worth noting that, to get a loan, you'll need to own the land you build on (and have enough equity in it), as many lenders will require land as security for the loan. This includes us!

2. Eco-friendly

Taking up less space means you’re leaving less of a footprint on the planet (literally). With less space, tiny homes use less energy, sometimes only 7% of what a standard house may burn through each year! Additionally, choosing to invest in an affordable home design that’s budget-friendly will mean you can do more with your income and invest in other green add-ons such as solar.

3. Simplicity

Declutter the home, declutter the mind. With less space for stuff, tiny homes encourage you to focus on what really matters – and avoid hoarding the stuff that doesn’t. Instead, you can use the space to streamline your living, leaving more space for life.

4. Design to Suit Your Lifestyle

The flexibility of tiny homes lends itself to many different lifestyles. Whether you’re looking for a sleek, sophisticated space or a down-to-earth haven, there’s a tiny home for you. The size of these small spaces also means they are easier to transport if you did decide to relocate.



The average price of a tiny home relies heavily on the type of tiny home and how it’s built. Many tiny homes are standardised, but many can be built to order and customised to suit your needs and desired preferences. DIY is an option for the thrifty; buying and converting former shipping containers and caravans is becoming a chic trend as well due to their affordable, sustainable, and simplistic design.

There are pros and cons to building your own tiny home versus hiring a building company. For example, hiring a builder or buying a prebuilt home is a great option for those who want to leave all the nitty-gritty work to experienced builders and designers. Professional tiny home builders will be familiar with all processes involved in building a tiny home and all regulations that need to be met. Any challenges that pop up throughout the project can be swiftly dealt with, ensuring fast delivery of your home. On the flip side, while hiring a building company is less labour intensive for you, it is the more expensive option (you may spend double the amount).

Standardised tiny home builds may also be a less appealing option for those who want more control over the design and building process overall. Building your own tiny home means you can build at your own pace, save money on labour costs, and have the flexibility to edit your design as you built. However, the main downside would be the time investment necessary for DIY. Most people work full time, at least 40-hours per week; meaning your tiny home will be built in your free time and take significantly longer to create.

For many people looking to finance their home build, getting personal finance or a decent home loan agreement will allow you the budget flexibility to craft your home from the ground up. Whether you do it yourself or design and build your home with the help of professionals, your tiny home will still be significantly more affordable compared to standard house prices.



The tiny home movement offers a range of opportunities to get yourself onto the housing ladder, no matter how small the step is. Avanti Finance has a range of options that can help you secure your dream space. Ask your local finance broker about your options for tiny home financing with Avanti Finance today.

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