Tiny Homes, Big Opportunities: The Kiwi Agent's Guide

Denese Konowe

Kia ora, everyone, and welcome back to Kiwi Real Estate, Inside Out. I'm Denese Konowe, and as always, I'm joined by my partner in both life and real estate, Dr Lee Konowe. Today, we're diving into a topic that's been on everyone's lips lately—tiny homes and alternative living. Lee, I have to say, when we first landed in New Zealand, I never imagined we'd see this kind of growth in the tiny home market here.

Dr Lee Konowe

Yeah, Denese, it's wild. I mean, tiny homes—fifteen to seventy square metres, right?—they've gone from a fringe idea to a real solution for a lot of Kiwis. And it's not just about the size. It's about sustainability, affordability, and, honestly, a bit of a lifestyle rebellion against the old quarter-acre dream. I always get tripped up on the square metres, by the way. Is it seventy or seventy-five? No, it's seventy. Right.

Denese Konowe

Seventy, that's the upper end, and you know, it's funny—back in the States, after the 2008 crash, we saw this movement take off. People just couldn't afford the big houses anymore, so they started looking for something that made more sense. And now, here in New Zealand, we're seeing about thirty-five percent annual growth in the tiny home market since 2020. Over twenty-five hundred tiny homes, valued somewhere between a hundred eighty and two hundred fifty million dollars, are scattered across the country. Auckland, Canterbury, Otago—those are the real hotspots.

Dr Lee Konowe

And the people buying these homes, it's not just one group. You've got post-separation buyers—folks who need a fresh start, maybe with a smaller budget. Empty nesters, too, who are done with the big family home and want to downsize. And then, of course, first-time buyers who just can't get a foot in the door with traditional property prices. I mean, Denese, you had that client in Virginia, remember? The one who'd just gone through a divorce and wanted a place of her own, but not a shoebox apartment. It's the same story here, just with a Kiwi twist.

Denese Konowe

Absolutely. I remember her so well—she wanted independence, something manageable, and a bit of green space. It's almost uncanny how those motivations have carried over. Here, affordability is still the number one driver—seventy-eight percent of buyers cite it—but environmental concerns and the desire for a simpler life are right up there, too. And, Lee, I think the pandemic really accelerated this, don't you?

Dr Lee Konowe

Oh, for sure. People started rethinking what "home" means, and suddenly, a smaller, more flexible space didn't seem so crazy. Plus, with remote work, you don't have to be in the city centre anymore. So, yeah, it's a perfect storm for tiny homes. And, you know, it's not just about the house—it's about the whole lifestyle shift.

Denese Konowe

And that brings us to the fun part—regulations. I say "fun" with a bit of sarcasm, because, honestly, this is where a lot of agents and buyers get tripped up. Lee, can you break down the basics? When is a tiny home a "building," and when is it a "vehicle" under New Zealand law?

Dr Lee Konowe

Yeah, so, under the Building Act 2004, if your tiny home is basically parked and lived in long-term, especially if it's hooked up to utilities or has the wheels off, it's probably a "building." That means you need building consent, unless you fit one of the exemptions. But if it's still got wheels, can be moved easily, and isn't a permanent residence, it might be classed as a "vehicle" under the Land Transport Act. But here's the kicker—councils can interpret this differently, and that's where things get messy.

Denese Konowe

And it's about to get even more interesting. Early 2026, we're expecting new exemptions for standalone dwellings up to seventy square metres. That could be a game changer, but until then, every council has its own take. Auckland, for example, has a sixty-five square metre limit for minor dwellings, and you need a family relationship to the main house. Christchurch is a bit more flexible—eighty square metres, and you can rent it out. But if you get it wrong, the penalties are serious—forced removals, fines, and, worst of all, you might not be able to insure the property.

Dr Lee Konowe

Yeah, and don't forget, even if you don't need consent, you still have to meet the building code. Exemption doesn't mean you can just slap something together. And, look, I've seen agents get caught out—like that recent case of an agent in Canterbury. They thought a tiny home on a rural block was all good, but the district plan had a minimum lot size, and the council wasn't having it. They had to bring in a building consultant and a property lawyer to sort it out. It was a headache, but it saved the deal.

Denese Konowe

That's why due diligence is everything. Before you even think about listing or buying, check the building consent status, get the Code Compliance Certificate, and make sure the district plan allows what you're planning. And, honestly, build a network—lawyers, building consultants, even council contacts. You can't do this alone, and you shouldn't try.

Dr Lee Konowe

Exactly. And, you know, as we talked about in our episode on property disclosure, documentation is your best friend. If you don't have the paperwork, you don't have a deal—at least not one that's going to stick.

Denese Konowe

So, let's talk about what this means for agents on the ground. Consultation is a whole different ballgame with tiny homes. You can't just show a property and hope for the best. You need to really dig into what the buyer wants—are they after mobility, sustainability, or affordability? And then you have to manage expectations, because these deals can take ten to twenty-four weeks, compared to six to twelve for a standard house. That's a long time if you're used to quick turnarounds.

Dr Lee Konowe

Yeah, and the marketing side is different, too. Visual tools are huge—floor plans, virtual tours, even augmented reality. People need to see how their life will fit into a small space. And you have to be upfront about costs, the process, and the timeline. I mean, I remember hearing about a first-home-buyer in Otago—he nearly lost his deposit on a non-compliant tiny home. The agent caught the issue during due diligence, flagged the missing building consent, and basically saved the client from a world of pain. That's the kind of proactive work that builds trust.

Denese Konowe

And that's how you build a reputation. When I started Envirian back in the States, we had to learn fast—markets change, rules change, and if you don't keep up, you get left behind. It's the same here. Ongoing learning, specialist networks, and transparent communication with clients—those are the keys. And, Lee, I think agents who embrace this are going to be the ones who thrive as the market keeps evolving.

Dr Lee Konowe

Absolutely. And don't forget, every region is different. What works in Auckland might not fly in Otago. So, keep learning, keep asking questions, and don't be afraid to say, "I don't know, but I'll find out." That's what sets the pros apart from the pack.

Denese Konowe

Now, let's get into marketing, because this is where agents can really shine. You can't just list a tiny home on the usual portals and hope for the best. You need targeted campaigns that speak to the unique benefits—affordability, sustainability, and flexibility. If you're trying to reach post-separation buyers, empty nesters, or first-timers, your messaging has to reflect their needs and motivations.

Dr Lee Konowe

And technology is your friend here. Virtual tours and augmented reality—these tools let buyers experience the space without even stepping inside. That's huge, especially for people moving from out of town or who are still on the fence. And, you know, building partnerships with local councils, tiny home builders, and even financial institutions can make the whole process smoother. It adds credibility, and it helps you stay ahead of the curve as the market matures.

Denese Konowe

Exactly. And don't underestimate the power of community. If you can connect buyers with others who've made the leap or with local support networks, it makes the transition so much easier. Plus, it shows you're not just selling a house—you're helping people build a new way of living. That's what makes this niche so rewarding.

Dr Lee Konowe

Couldn't agree more. And, look, as we've said in past episodes, the agents who invest in learning, who build those networks, and who really understand their clients—those are the ones who'll lead the way as tiny homes become a bigger part of the Kiwi property landscape.

Denese Konowe

Well, that's all we've got time for today. If you're an agent looking to get into the tiny home market or just want to stay ahead of the curve, keep learning, keep asking questions, and don't be afraid to reach out for help. Lee, always a pleasure chatting with you.

Dr Lee Konowe

Likewise, Denese. And thanks to everyone for tuning in. We'll be back soon with more on what's shaping the future of Kiwi real estate. Ka kite!

Denese Konowe

Ka kite, everyone. Take care, and see you next time on Kiwi Real Estate, Inside Out.