Adding a tiny house or granny flat to your backyard can create an extra, separate residence on your property. Moreover, if the tiny house is small enough, you might avoid dealing with extensive regulations from your local council.
Here are three creative ideas to transform your single-dwelling property into a dual-dwelling property without losing too much of your precious backyard space.

Can You Add a Tiny House to Your Backyard?
It depends on your yard space and local council approval. Many people successfully add ancillary buildings to their properties. In some cases, you might not need council approval. For instance, if you have a large property (typically over 450m²) and a small building that doesn’t impact neighbors, you may not need approval. However, if your tiny house includes a kitchen or bathroom, it might qualify as an ancillary dwelling. Thus, check with your local council first.
How Much Would It Cost?
Costs for adding a tiny house or granny flat vary. Here are some estimates:
- $20,000 – $40,000 for a shipping container structure tiny house
- $60,000 – $70,000 for a prefabricated model (similar to many tiny homes)
- Around $120,000 for a custom build
These costs can increase depending on your choice of fixtures and finishes. Consider the purpose of the tiny house: Is it for personal use, for family members, or as a rental property on platforms like Airbnb? The intended use will help determine whether you opt for high-end, luxurious materials or more basic, functional options.
Additional costs may arise from necessary work like plumbing, ground leveling, or excavation.
What Can You Use a Tiny House in Your Backyard For?
You have many options, depending on the type of tiny house or structure you select. For example, if you park a tiny home (classified as a caravan) on your property, local regulations might limit full-time residence to a certain number of days per year. Check our post about Tiny House Regulations.
Potential uses for a backyard tiny house include:
- Granny flat
- Artist’s studio
- Short-term accommodation (like an Airbnb)
- Home office
- Guest Housing

Ways to Add a Tiny House to Your Backyard:
- Build a Granny Flat Granny flats are considered ancillary dwellings, and their size will depend on factors such as your available space, council approval, and building permits. Fortunately, modern design options make granny flats a stylish addition to any backyard. For instance, they are typically limited to a 60 square meter floor plan and a height of around 5 meters.
- Add a Studio (15x40ft or Smaller) A backyard studio can provide a tranquil escape or a quiet zone for activities like learning an instrument or watching sports. Studio dimensions generally start from 3 x 3.5 meters and can be fully customized or purchased as prefabricated kits or modular designs, Consequently, transforming your property into a duplex becomes easy.
- Park a Tiny House Tiny homes, often classified as caravans, are subject to road-use regulations and must not exceed 2.5 meters in width. However, if not used on the road, they can be considered ancillary dwellings. With clever designs and storage solutions, tiny houses can feel spacious and comfortable, making them a popular choice for travelers. A tiny house in your backyard could even generate income through short-term rentals.
Explore the potential of adding a tiny house to your backyard and enjoy the benefits of extra space and flexibility!