Modular Homes and Class 1a Dwellings: Understanding the Difference

When comparing modular homes and Class 1a dwellings, it’s important to understand that the difference is not about quality, size, or whether the home is built in a factory or on site. The distinction is about how the home is classified and approved once it is installed.

One of the most confusing topics is classification and understanding how these categories work isn’t just technical. Terms like Class 1a, modular, or tiny house on wheels are often used interchangeably — but they’re quite different. The classification directly affects approval pathways and timeframes, compliance and certification costs, land requirements, financing options and long-term flexibility and resale.

Understanding this upfront will help to avoid unexpected delays, costs, or limitations later in the process.

What Is a Class 1a Dwelling?

A Class 1a dwelling is a legal classification under the National Construction Code (NCC). It describes a single, permanent residential dwelling — including a detached house or a secondary dwelling such as a granny flat. From a council perspective, once a building is classified as Class 1a, it is treated no differently to a traditional home.

What defines a Class 1a home is not how it looks, but how it is installed and used. A Class 1a dwelling:

• Requires both planning approval and a building permit
• Is permanently fixed to the land
• Must fully comply with the NCC
• Is inspected at multiple construction stages
• Is connected to permanent services

While Aussie Tiny Houses is widely known for movable housing, we also design and build fully compliant Class 1a dwellings for people who want permanence, council approval certainty, and long-term residential use.

A key example is the Casuarina 10×3, a purpose-designed Class 1a home, engineered from the outset to meet NCC requirements and local council planning controls. It is not retrofitted or reclassified after the fact. The Casuarina 10:

• Is approved as a Class 1a dwelling
• Requires planning approval and a building permit
• Is permanently fixed to the land
• Is suitable for full-time residential living
• Aligns with council, lender, and insurer expectations

This model suits buyers who want a compact, well-designed home without compromising on compliance, durability, or long-term value.

What Is a Modular Home?

A modular home is not a separate legal category from a Class 1a dwelling. Instead, it is a method of construction. Once a modular home is installed on permanent footings or a slab, connected to services, and approved for occupation, it becomes a Class 1a dwelling under the National Construction Code. In practical terms, this means:

• A modular home must obtain planning approval before installation
• A building permit is required
• The home must fully comply with the NCC
• Engineering, inspections, and certifications apply
• The dwelling is permanently tied to the land

From a council and regulatory perspective, there is no difference between a modular home and a traditionally built house once installation is complete.

Permanence: The Key Consideration

One of the most important implications of Class 1a classification is permanence. Whether constructed on site or delivered in modules, a Class 1a dwelling is fixed to the land indefinitely and cannot be relocated without major demolition and cost. It becomes part of the property’s long-term development footprint. This permanence brings clear benefits. Class 1a dwellings are eligible for traditional financing, can offer stronger resale value, and provide certainty around legal status and use.

However, permanence also means:

• Full commitment to a specific site
• Longer lead times due to approvals and compliance
• Higher upfront costs associated with infrastructure and services

For buyers, this makes land selection and long-term planning especially important.

Approval Pathways and Timeframes

Both modular homes and other Class 1a dwellings follow the same regulatory pathway. This typically includes:

• Planning approval under the local planning scheme
• Building approval confirming NCC compliance
• Inspections during construction and installation
• Occupancy certification before the home can be lived in

While modular construction can shorten the build phase by shifting work off-site, it does not eliminate the need for approvals. Timeframes are still influenced by council processes, site conditions, and service connections. Understanding this helps set realistic expectations about how quickly a home can be delivered and occupied.

Financial and Lifestyle Implications

Choosing a Class 1a dwelling — whether a tiny house, modular or traditionally built — is best suited to buyers who value long-term stability, traditional ownership structures, and permanent residency on owned land.

Because Class 1a homes are fixed dwellings that meet full National Construction Code requirements, they generally qualify for standard residential lending, making them eligible for conventional home loan applications rather than specialist or personal finance.

This clear compliance and lending pathway provides greater certainty for buyers looking to build long-term equity and access familiar financial products. As a result, Class 1a dwellings are often the right choice for those planning to remain in one location for the near future and who are comfortable with a higher upfront investment in exchange for permanence, resale value, and financial security.

Making the Right Choice for Your Situation

The decision isn’t about which option is “better” — it’s about alignment. Alignment with your land, your financial position, your long-term plans, and your appetite for permanence.

What matters most is understanding that once a home is approved and installed as Class 1a, it enters the same regulatory, financial, and legal framework as any conventional house. That reality shapes everything from approvals and timelines through to lending, insurance, and resale.

At Aussie Tiny Houses, we believe informed decisions lead to better outcomes. Whether you’re considering a compact permanent home like the Casuarina 10×3 or exploring other Tiny House on Wheels solutions, taking the time to understand classification upfront will save time, cost, and frustration later.

If you’re weighing up your options or want clarity on what pathway suits your land and lifestyle, speak with our team. The right solution starts with the right information.