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Cary claims tiny homes not the answer to WA housing crisis

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  Published in House and Home on Tuesday, September 23rd 2025 at 6:58 GMT by The West Australian
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WA and Perth Housing Crisis: John Carey Says Tiny Homes Aren’t the Silver Bullet

The West Australian is grappling with a housing crisis that has pushed the state’s capital, Perth, into a “housing emergency” with skyrocketing rents, limited supply, and a swelling backlog of new homes. In a recent interview with John Carey—Chief Executive of the West Australian Housing Authority (WAHA) and former chair of the Western Australian Housing and Urban Development Council—Carey outlines the root causes of the crisis and cautions against over‑reliance on tiny‑home solutions. Below is a comprehensive overview of Carey’s insights, supplemented by context from the article and its referenced sources.

1. The Anatomy of the Crisis

Supply‑Side Constraints
- Land Availability: Perth’s topography and zoning restrictions limit available development land. Carey notes that many potential sites have been earmarked for non‑residential uses or are subject to heritage protections.
- Construction Costs: The cost of building materials has surged worldwide, with the Australian construction industry reporting a 15‑20% increase in material prices in the past two years. The article cites a WA Government Housing Report which found that construction costs now exceed the 2014 baseline by 40%.
- Regulatory Hurdles: Permitting delays and stringent planning codes add to the time and expense required to deliver new homes. Carey emphasises the need for a “streamlined permitting process” that can match the pace of demand.

Demand‑Side Pressures
- Population Growth: Perth has seen a steady influx of migrants, particularly from China and India, driven by the state’s growing mining and tech sectors. The article notes a 12% increase in the state’s population over the past decade.
- Rising Rents: The Australian Bureau of Statistics reports that the median monthly rent in Perth’s inner‑city suburbs increased by 9% in the last year alone. For many families, rent now exceeds 30% of their gross income—a figure that places them in the “housing cost‑burdened” category.

2. Tiny Homes: A Pragmatic But Limited Remedy

The article foregrounds the “tiny‑home” movement—small, often prefabricated houses that can be erected quickly and affordably. The movement has seen growing support in other Australian cities, but Carey remains skeptical.

Key Points from Carey’s Interview

Carey stresses that tiny homes are a “tool in the toolbox” rather than a panacea. He argues that the most effective solutions involve integrated planning—combining density‑raising projects, affordable‑housing schemes, and community engagement.

3. Other Policy Levers Worth Exploring

The article references several initiatives that could relieve the housing crunch.

3.1 Density‑Raising Measures

• Section 38.2 of the Planning and Development Act 2005 allows higher densities near transit hubs. Carey highlights that the state could push for “maximum density” in Perth’s CBD to accommodate more families without expanding the city’s footprint.
• Mixed‑Use Development: Combining residential with retail or office space can provide shared amenities and reduce land cost per dwelling.

3.2 Affordable‑Housing Incentives

• Rental Subsidies: The WA Housing Fund provides subsidies to low‑income households. Expanding this program could help bridge the gap for those priced out of the market.
• Land‑Cost Reductions: The state is exploring reduced land‑cost contributions for developers who commit a certain percentage of units to social housing.

3.3 Streamlined Permitting

The article cites a 2024 Perth Planning Review which recommends a “one‑stop shop” permitting process, reducing approval times from 18 months to 6–8 months. Carey argues that faster approvals could accelerate construction and reduce material cost inflation.

4. The Bigger Picture: Housing as an Economic Catalyst

Carey points to a growing consensus that housing stability fuels broader economic outcomes—productivity, health, and civic engagement. He cites a 2023 Australian Housing Study that found regions with higher housing affordability have lower crime rates and higher student retention.

The article also references an interview with Dr. Laura Thompson, an economist at the University of Western Australia, who predicts that failing to address the crisis could cost WA the state an estimated $3.5 billion in lost productivity over the next decade.

5. Bottom Line: A Multifaceted Approach

The West Australian article concludes that while tiny homes offer an intriguing, quick‑win option, they are far from a silver bullet. Carey stresses the need for a holistic strategy that balances short‑term affordability measures with long‑term planning and infrastructure investment.

He calls on policymakers to:

1. Re‑evaluate zoning and planning codes to unlock new land for high‑density, mixed‑use projects.
2. Invest in affordable‑housing funds that incentivize private developers to build low‑cost units.
3. Leverage technology in construction—such as modular building and digital twins—to reduce waste and construction time.
4. Foster public‑private partnerships that can share risk and accelerate delivery of housing projects.

Ultimately, the article paints a clear picture: Perth’s housing crisis is a complex, multifactorial problem that demands coordinated action across sectors. Tiny homes may help fill gaps in the short run, but the long‑term solution will lie in comprehensive, data‑driven planning and robust community engagement.