20 April 2026

Mobile tiny homes in backyards? Plans for Shellharbour pilot program open for feedback

| By Kellie O'Brien
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Chris Homer mobile tiny home

Mayor Chris Homer inside one of the mobile tiny homes. Photo: Shellharbour City Council.

A proposal to allow mobile tiny homes in Shellharbour backyards has opened for public feedback, as council explores new ways to ease the region’s housing crunch.

The two-year pilot would allow small, trailer-based homes to be placed on residential properties without a development application, offering a more flexible and lower-cost housing option.

The Tiny Homes Pilot Program was first put to council in September last year, where some Shellharbour City councillors raised concerns about the potential impacts.

Under the proposal, the moveable dwellings could be registered like a vehicle under the Road Transport Act 2013, removing development fees and streamlining the approval process for those used as rental accommodation.

Mayor Chris Homer said placing the proposal on public exhibition marked a key step forward, following NSW Government’s gateway determination, which allows it to proceed to further review and community consultation while signalling in-principle support for the trial.

“This project is about responding to the very real housing pressures people in our community are facing, while making sure any changes are carefully considered and well managed,” Cr Homer said.

“The gateway determination shows there is support to explore this idea, and now it is time for our community to review the detail and tell us what they think.”

READ ALSO No DA needed as Shellharbour opens door to tiny home rentals

During last year’s council meeting, councillor Kellie Marsh said tiny homes empowered residents with more options, not more barriers.

“Rents are rising, vacancy rates are falling, and many local families, workers and young people are being priced out of the very community they call home,” Cr Marsh said.

“Permitting a tiny home on existing housing blocks in Shellharbour offers a simple, low impact and cost effective way to provide relief to both renters and homeowners.”

Councillor John Davey had said he supported it, but was concerned about the visual impact on streetscapes, parking, and deterioration of roads through increased usage.

Likewise, Councillor Lou Stefanovski supported it for being “environmentally friendly due to their very small carbon footprint” and being affordable for the majority of people, but also had concerns they would be approved without any fees paid.

READ ALSO Tiny homes set to make a big impact as Shellharbour backs two-year trial

Councillor Rob Petreski asked about their effects on water, sewerage and stormwater, to which staff replied it was no different to a secondary dwelling that goes through the current pathway and that Sydney Water had already allowed for capacity in the network for this type of “background growth”.

Councillor Mitch Ellis said the pros were far greater than the cons, including reduced energy usage, it not affecting resale value being a removable dwelling, and being able to “light up an entire home with one candle”.

At this stage, the pilot has not been approved and no tiny homes can be installed under the proposal.

If approved, it will allow mobile tiny homes to be installed on existing residential properties without a development application, but will be subject to strict conditions such as minimum setbacks, connection to essential services, and compliance with fire safety and construction standards.

If successful, it could also expand beyond the two-year trial.

Following the exhibition, council will review all submissions before reporting back to council for consideration. The pilot cannot proceed unless the proposed changes are formally adopted.

The Tiny Homes Pilot Program’s planning proposal and local approvals policy documents are on public exhibition until 8 May and written submissions will be accepted until 4:30 pm on 22 May.

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jackie mothersdill3:10 pm 21 Apr 26

Sadly there is insufficient parking on residential streets now due to so many ‘Granny’ flats being constructed. Tiny homes will just add to this issue. And don’t get me started on caravans parking in residential streets.

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