Bigger isn’t always better, especially when it comes to houses. Particularly when you can have a new house built for $100,000-$250,000.

Small but perfectly formed secondary dwellings designed to sit in the back garden of another home can be comfortable, stylish and extremely livable, while at the same time helping to ease New Zealand’s shortage of affordable housing.

A nationwide competition last year proved that – organised by PrefabNZ, the industry body for off-site building companies to find the best design for a pre-fabricated dwelling of between 35 and 65sqm (which they’ve called a SNUG home) that can be sited in a backyard.

PrefabNZ partnered with Mitre 10 New Zealand on SNUG homes and General Manager Trade, Derek Heard, says the SNUG homes developed are excellent examples of well designed, smaller footprint homes with better use of building materials.

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“While much of the demand for residential housing in metropolitan areas is addressed with medium- to high-density housing solutions, there is a largely untapped opportunity where land with existing dwellings can be subdivided to accommodate minor dwellings,” he says.

“Smaller footprint homes, such as SNUG homes, are just another way that prospective home owners can enter the market at a very affordable price point.”

“The SNUG competition was a way to showcase the possibilities of smaller footprints and how, with very clever design, these homes are high quality, warm, dry and healthy, with aesthetic appeal – while being affordable.

Pamela Bell, chief executive of PrefabNZ, says they came up with the SNUG idea after discussing a report that showed minor dwellings could help address housing needs.

The Centre for Research, Evaluation and Social Assessment report almost 11 per cent of New Zealand’s housing could be partitioned to deliver 180,000 extra dwellings without involving greenfield sites.

“We wanted to create solutions for people who are asset-rich with property but cash-poor and constrained when it comes to helping family members who need somewhere to live. SNUG homes are ideal for adult children who want to start a family but can’t afford a place of their own, or elderly relatives who need to be close to family.”

Couples could also move into the SNUG home themselves, freeing the family house for their children and grandchildren: “You get a brand-new, sustainable, insulated designer home – I couldn’t imagine anything better,” says Bell.

The cheaper long-term running costs of a smaller home are also worth bearing in mind and, while many have doubts about being able to live in a small space, it’s time to re-think how much room we actually need, says Bell: “A four-bedroom house with three bathrooms and a two-car garage is beyond many people’s needs, especially when our population demographic consists of a lot of two-people households.

Chris Fisher, Group Manager – Merchandise at Mitre 10, says Kiwi buying trends are shifting towards products that will make the most of smaller spaces.

“For example, traditionally the backyard was regarded as the “fifth room” of a property with the quintessential big three burner barbecue and full dining suite taking centre stage. But demand seems to be rising in ranges and products in line with people wanting to make the most of smaller spaces – items such as café style outdoor furniture sets and compact Weber or charcoal barbecues,”

PrefabNZ’s competition – with the support of Mitre 10, Auckland Council, Holmes Farsight, NZ Green Building Council, Lifemark, New Zealand Institute of Architects and Architectural Designers NZ – was intended to see what architects and design firms could come up with. Prizes included pre-consent approval from the Auckland Council for the top six designs, along with Homestar and Lifemark pre-approvals.

“We were overwhelmed with the response,” says Bell. “We had 86 entries and it was a job getting that down to 12 finalists.”

The six chosen as winners were a selection of striking next-generation designs, including one that can either be a single level dwelling or flipped on its side to provide two levels and take up less ground space. This clever Flip design, by First Light Studio with Panelwood and Victoria University student Brittany Irvine, also won the People’s Choice award.

Prices for SNUG homes are expected to range between $100,000 and $250,000. Some of the companies who took part in the competition are already fielding enquiries about the dwellings designed; PrefabNZ is also working with partners like Mitre 10 and Resene to do what they can to get SNUG homes into people’s back yards.

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