Tiny Homes, Big Impact: Lake Macquarie Launches Bold Housing Trial in Belmont North

newy.com.au – A bold trial in Belmont North is set to test the potential of tiny homes as a local solution to the housing affordability crisis gripping the nation. Lake Macquarie City Council will partner with Allambi Care to install two compact, self-contained dwellings on Council-owned land, offering temporary accommodation for families facing housing stress.

Lake Macquarie Mayor Adam Shultz said the pilot emerged from the April Housing Forum, which brought together more than 80 participants from across government and the community sector. “We must be brave, we must innovate and we can’t just keep doing the same thing and expecting things to change,” he said. “We need to lean into new opportunities and work together.”

The Council says this initiative is part of a broader push that includes updated planning frameworks and financial incentives aimed at spurring affordable development. The tiny homes will be managed by Allambi Care, a Hunter-based human services provider with a footprint extending into the Central Coast and Victoria. CEO Simon Walsh said, “The use of a tiny home is a practical and cost-effective way to address housing affordability and tackle homelessness, providing safe, dignified and immediate shelter for those in need.”

In addition to the tiny homes, Council is preparing to install three prefabricated dwellings on under-used land nearby, as an interim housing measure. “These are relatively small projects but that doesn’t reduce their importance,” Mayor Shultz said. “They aim to provide proof of concept, and if they work, they could create a solution blueprint with potential to be rolled out much more widely.”

Council is also exploring reforms to its Development Contribution Plans, aiming to encourage – rather than inhibit – the construction of affordable housing. “We heard from multiple stakeholders at the Housing Forum that Development Contribution Plans should do more to encourage rather than deter affordable housing developments,” the Mayor added.

A report detailing the forum outcomes and a related action plan is expected to go before Council on 30 June. Meanwhile, a motion proposing a dedicated infrastructure fund for regional housing affordability will be put forward at the National General Assembly of Local Government this week.