The Cost of Tiny Living

Based on the experience of Jessica Love, Designer at Aussie Tiny Houses, who lives in a tiny home.

For many Australians, the dream of home ownership feels further away than ever. Rising property prices, high interest rates, and the cost of living have driven a growing number of people to think smaller—literally. Tiny living isn’t just a housing trend; it’s a pathway to financial freedom, simplicity, and sustainability. But what does it actually cost to live in a tiny house month to month?

At Aussie Tiny Houses, we believe financial freedom shouldn’t come at the cost of comfort or quality of life. More Australians are discovering that by downsizing their living space, they can upscale their lifestyle—reducing expenses, simplifying daily life, and gaining the flexibility to live on their own terms. So, let’s take a closer look at what tiny house owners can expect when budgeting for life on a smaller scale.

Housing Costs: Land Rental or Mortgage

If you own your land outright, your monthly housing costs are minimal. However, for most tiny house owners, renting a space or leasing land is common. Land rental: Around $100–$300 per week, depending on location, access to amenities, and proximity to major centres.

Mortgage or financing: If you’ve financed your tiny home, repayments typically range between $800–$1,200 per month—still significantly lower than the average Australian mortgage or rent.

Many owners choose to park on family land, rural properties, or eco-villages to reduce these costs further.

Utilities and Essentials

One of the biggest benefits of tiny living is lower ongoing utility expenses.

• Electricity & Gas: Tiny homes use less power—especially if you’re off-grid with solar. Budget around $20–$80 per month depending on setup. According to Jess, wen living alone, she only needed to change two 8.5kg gas bottles per year, costing around $32 each. After her partner moved in, this tripled 😊!
• Water: Water filters for rainwater or tank systems need annual replacement, which can range from $50 to $600, depending on the system.
• Internet: With 4G/5G or satellite options, budget around $60–$100 per month.
• Waste & Sewerage: Composting toilets and greywater systems can eliminate most traditional costs, saving you $30–$60 per month.
• Money-saving tips: Off-grid solar, rainwater harvesting, composting toilets, multi-purpose furniture, and co-locating with other tiny home owners.

Insurance and Maintenance

Protecting your investment is crucial.

• Tiny house insurance: Around $50–$120 per month, depending on whether you’re mobile or stationary.
• Maintenance & repairs: Tiny homes are easier and cheaper to maintain than full-sized properties. Jess notes that, thanks to Aussie Tiny Houses’ quality build process, she hasn’t spent anything on repairs since moving in—just the time needed to keep the home clean.

Food, Transport, and Lifestyle

While these costs vary from person to person, tiny living tends to encourage a more intentional lifestyle.

• Groceries: $400–$600 per month, depending on household size.
• Transport: If you’ve relocated to a regional area, you may save on commuting—budget around $200–$400 per month.
• Entertainment & leisure: Tiny living often shifts focus towards outdoor activities and experiences, reducing overall discretionary spending.

Estimated Monthly Budget for Tiny House Living

Here’s a rough guide to what your monthly budget might look like as a tiny house owner in Australia:

Category	Estimated Monthly Cost
Land Rent or Mortgage	$800 – $1,200
Utilities & Internet	$80 – $220
Insurance & Maintenance	$80 – $200
Groceries & Essentials	$400 – $600
Transport & Lifestyle	$200 – $400
Estimated Total	$1,560 – $2,620

Compared to the average Australian household cost of living—often upwards of $4,000 per month—tiny living offers a genuine opportunity to reduce expenses and achieve greater financial flexibility.

The Hidden Benefits of Tiny Living

Beyond the numbers, tiny house living often leads to financial freedom and peace of mind. Lower costs mean more choice—whether that’s working fewer hours, travelling more often, or saving for the future. Tiny living also encourages sustainability, minimalism, and a deeper connection to your surroundings. For Jess, tiny living has made her highly aware of purchases—as every item needs a purpose and space. “Every purchase I make is considered an investment,” she notes, helping to reduce unnecessary spending. By reducing excess, many owners find they gain something far more valuable: a sense of clarity and control over their lifestyle.

Tip: How to Save Even More on Your Tiny Home Budget

• Choose an off-grid solar setup to cut ongoing utility costs.
• Install a composting toilet to remove sewerage expenses entirely.
• Opt for rainwater harvesting and filtration instead of town water.
• Use multi-purpose furniture to reduce the need for extra storage or expansion later.
• Consider co-locating with other tiny house owners to share internet and land lease costs.

The true cost of tiny living goes beyond dollars and cents—it’s about freedom from financial strain and the ability to live intentionally. While every setup is different, most tiny house owners enjoy lower monthly costs, reduced stress, and a more sustainable way of life.

If you’re curious about making the move, explore the range of custom-built tiny homes at Aussie Tiny Houses and start planning your journey toward financial and lifestyle freedom.