Top 5 Myths About Going Tiny (and the Truths That Save You $$$)

So, you’ve been eyeing those dreamy tiny homes on Instagram. The fold-down decks. The loft beds with fairy lights. The perfect cup of coffee on a perfect little porch.

But then...bam! Someone (usually a well-meaning friend or a grumpy uncle) tells you:
“Tiny houses don’t work here.”
“They’re not legal.”
“They’re cute, but they cost the earth.”

Sound familiar?

Here’s the good news: most of what you’ve heard about tiny homes is half-truths, myths, or plain old campfire stories. And believing them could cost you time, money, and your sanity.

Let’s bust the big five, shall we?

Myth 1: “Tiny houses are cheap — like, dirt cheap.”

Truth: A well-built tiny house is affordable, yes. But “cheap”? Not unless you cut corners you’ll regret later.

Here’s the kicker: a solid tiny build will usually cost between $95,000–$195,000 NZD (similar in AU, and in the US depending on state and zoning). That’s less than a mortgage for a standard home, but it’s not pocket change.

The real saving grace? You’re not locked into decades of debt. You’re trading a 30-year mortgage for a smart, strategic build that frees up your income.

The mindset shift: Think value for freedom, not bargain-basement pricing.

Myth 2: “Councils won’t allow tiny houses.”

Truth: Councils don’t wake up plotting how to ruin your tiny dream. The challenge is zoning, not outright bans.

Yes, regulations differ from region to region. Some areas are more progressive, others slower. But people are living legally in tiny homes across NZ, AU, and the US right now.

The real mistake is assuming “it’s impossible” instead of asking the right questions. Many of my clients discover it’s less about a big “no” and more about navigating land use, building standards, and services.

Builder-ready people (like you’ll become with the right prep) know what to ask, who to talk to, and how to sidestep the common council headaches.

Myth 3: “You have to own land to go tiny.”

Truth: Nope. Many tiny homeowners live on borrowed, leased, or shared land.

In fact, this is where creativity shines. Families often negotiate land use, friends collaborate, and there are even land-share opportunities popping up all over.

The secret is learning how to structure the arrangement so everyone feels safe and supported. That means clear expectations, agreements, and sometimes even writing down who’s paying for power or mowing the paddock.

You don’t need to own land. You need to know how to ask for it with confidence.

Myth 4: “Tiny houses are only for single hippies with dreadlocks.”

Truth: This one makes me laugh every time.

The tiny house movement is full of diversity. Families. Retirees. Professionals. Divorced women starting fresh. Even grandparents wanting to be close to the grand-kids without living in the kids’ house.

What unites them isn’t a hairstyle - it’s the desire for freedom, simplicity, and housing that actually works for their lives.

Tiny living isn’t about “fitting a stereotype.” It’s about creating security and independence on your own terms.

Myth 5: “You’ll regret it — too small, too cramped.”

Truth: Will you regret not being trapped in debt? Not paying sky-high rent? Not feeling like housing is out of your control? Probably not.

But yes, tiny houses can feel cramped if they’re not designed well. That’s why layout is everything. A tiny house that flows with your daily life feels empowering, not restrictive.

Most of the regrets I hear about? They’re from people who rushed in without planning. (Example: one client wished she’d added a log burner during the build, not after.)

The regret isn’t about being tiny. It’s about skipping the prep.

What This Means for You

Here’s the punchline: the myths are just noise. The truth is, people just like you are building and living in tiny homes every day.

The real question is: will you let a myth stop you, or will you take the smarter, strategic route?

Your Next Step

If you want to sidestep myths, council headaches, and “what ifs,” start small (pun intended).

Grab your free mini-course: Preparing for Tiny House Living: From Motivation to Action.

In just a few short lessons, you’ll learn the 5 steps that take you from dreaming to planning with confidence.

Because freedom isn’t found in a myth, it’s created when you take action.