TINY HOMES PILOT PROGRAM NOW OPEN IN SHELLHARBOUR

Shellharbour City Council's Tiny Homes Pilot Program is now underway, creating a new pathway for eligible mobile tiny homes to be used as long-term rental accommodation across the Shellharbour local government area.

Caption: Mayor Chris Homer inside a mobile tiny home. Image courtesy of Shellharbour City Council.

The pilot can now begin following changes to the Shellharbour Local Environmental Plan 2013. These changes complete the planning process needed to make the trial operational.

The two-year trial, which is the first initiative of its kind in NSW local government, was developed in response to growing housing affordability and rental supply challenges. It aims to increase housing choice by providing an additional rental option for local residents.

Mayor Chris Homer said the pilot demonstrates Council's commitment to exploring practical solutions to local housing challenges.

"We know housing affordability and rental availability are putting real pressure on many people in our community. While there's no single answer, we need to be open to exploring new ideas that can help provide more housing options for local residents."

"This is an important step because we're now moving from planning into action. The pilot will allow us to see how mobile tiny homes work in a real-world setting, while ensuring appropriate safeguards are in place for residents."

"The lessons we learn through this trial will help inform future decisions and give Council a better understanding of whether mobile tiny homes could play a role in broadening housing options across our city."

The pilot applies to eligible mobile tiny homes built on wheels that are registrable vehicles and installed on suitable residential properties.

Under the pilot, eligible mobile tiny homes will be approved through Council's Local Approvals Policy without the need for a development application, provided they meet specific requirements.

The pilot has two main goals:

• Increase housing diversity and affordability by providing a more flexible and lower cost rental option.
• Test how mobile tiny homes work in practice before considering any future planning changes.

The pilot was developed through a detailed planning process that included community consultation and public exhibition. Following consideration of community feedback, Council adopted the required planning changes in June 2026.

The NSW Department of Planning, Housing and Infrastructure has now finalised the required amendments, allowing the two-year trial to begin.

Council will monitor the pilot throughout the trial period and evaluate the results to inform future decisions and identify lessons learned.

Residents interested in participating in the pilot can find eligibility requirements, application information, FAQs and supporting documents on Council's website.

KEY MESSAGES:

• Shellharbour City Council has launched its Tiny Homes Pilot Program, creating a new pathway for eligible mobile tiny homes to be used as long term rental accommodation.
• The two-year pilot aims to increase housing choice by providing a flexible and lower cost rental option in response to housing affordability and rental supply challenges.
• The pilot will help Council test how mobile tiny homes work in practice and use the findings to inform future decisions, while maintaining appropriate planning, safety and eligibility requirements.