Round and round it goes. Where the money hose stops, nobody knows. Oh. Correction. It stops here:
If there’s one thing you can always ride all the way to the bank, it’s the government.
Government spending blows bubbles. Wherever the Feds or States point their money hoses, there the money tree growses.
And with borrowing costs effectively going to zero around the world, government spending is about to be let off the leash.
This is going to show up in all sorts of places, and create all sorts of opportunities, but here’s one that might surprise you: the tiny home bubble.
Tiny Homes (effectively something that has the technical dimensions of a a caravan and can therefore be treated that way by that regulation) are here to stay. They’re part of the future mix of housing.
And recently, the government gave tiny homes their tick of approval.
The Morrison government wants to make tiny homes a bigger deal.
Industry Minister Karen Andrews, a self-described fan of tiny homes, says she wants to see the prefabricated building sector grow by $30 billion over the next five years. The sector currently makes up about three to five per cent of Australia’s $150 billion construction industry, but Ms Andrews says it could grow to 15 per cent by 2025.
The Industry, Science and Technology Minister will announce a study on Sunday which will look at ways to dGovt points money hose at this surprise sector evelop the prefabricated building industry.
The study will examine safety issues, regulations around prefab buildings and export opportunities, particularly in the Asia-Pacific. Prefabricated construction involves any part of a building (such as the floor) or a whole building that is made off-site. This includes modular constructions for homes and offices and tiny homes.
The government has set aside $2 million for the initial study and then plans to set up an innovation lab to help manufacturers design prefabricated buildings.
Ms Andrews said there was a “massive opportunity” to boost the building and construction industry and potentially create an estimated 20,000 new jobs.
Yup. There’s a massive opportunity to boost the industry. There’s a massive opportunity to line your pockets. Same same.
But Australia is no pioneer here. Many countries like the UK, the US and Canada (all places with their own housing affordability challenges), are hoping that tiny homes are going to help.
The Vancouver Sun says that in Canada, it’s become a ‘craze’.
There is nothing small about the tiny-home craze… From flat pack, self-assembly cabins, to repurposed shipping containers, to small homes on wheels, there is now something out there to suit every site and budget…
Delta’s Mint Tiny Homes make homes that range in length from 22 to 44 feet, all on wheels, for easy transportation and are RV certified. They range in price from around $75,000 to $100,000…
Their most popular tiny home over the past few months is their Canada Goose model, says McBride, which is their largest offering, ranging in length from 38 to 44 feet. “These are popular with families, those who want that extra space, and extra storage. Also with those who want the standup bedroom”…
Because Mint Tiny Homes are on wheels, they don’t require foundations or any hookups, says McBride. They can be used the moment they’re driven onto a property…
The demand for tiny homes, he says, is growing… “If you look at the U.S., and California, there’s a new city every month opening up its bylaws for tiny homes. Even Oregon and Texas. More and more cities are becoming tiny-home friendly,” he says.
Tiny Homes are coming. The government needs them. Without them there’s very little the government can say it’s doing to support affordability.
And so the government has to support them, and has to support the industry with regulation, and has to support the industry with cash.
So the money hose is ready?