The best granny flats and tiny homes we saw in 2025

Bigger isn’t always better – sometimes it’s quite the opposite.

For some home owners, a smaller footprint means greater focus on the things that matter.

While there might be less kitchen bench space for storing that new air fryer, in its place, there’s motivation to really work with what you’ve got.

From granny flats to clever tiny homes, these are the small (but mighty) homes that we loved in 2025.

1. Tiny designer cottage in Sydney

This single-level Victorian house was on the market for a mere 12 days.

A recent renovation brought the tired home into the modern era with luxuries like herringbone oak floors and a sculptural stone kitchen.

Read the story: Tiny renovated Sydney cottage sells for $1.89 million

2. A mini weatherboard home neighbours love

When owners Sue and Steve decided to put a corner of their Geelong East backyard to better use, they didn’t expect it to be as successful as it turned out to be.

Now a popular Airbnb stay, the tiny home – six metres long and 2.8 metres wide – is the talk of the neighbourhood.

Read the story: This Geelong East tiny home is one of the most wanted properties in Australia

3. The school bus that became guest accommodation

This Sydney home has plenty of notable inclusions but the school bus is the star of the show.

The vintage people-mover was converted into guest accommodation, proving that anything can be a living space with a bit of imagination.

Read the story: Quirky home with converted vintage school bus up for sale

4. The tiny home that granted the owner financial freedom

Single mum Briony Jenkinson found financial freedom after selling everything in her rental unit and eventually buying and renovating this tiny house.

She couldn’t imagine living anywhere larger and now runs a business – Park My Tiny House – to make the tiny house lifestyle possible for others.

Read the story: How a tiny house made home ownership possible for this Victorian woman

5. Restored shed built with sustainable materials

There’s a lot to love about this Bangalow farmhouse renovated by stylist Natalie Walton and her partner, Daniel Rollston.

They turned this former shed into a functional multipurpose zone that includes a kitchenette, a bathroom, and cosy breakfast nook.

Read the story: Stylist Natalie Walton’s lasting imprint on a Bangalow farmhouse, now for sale

6. Travelling tiny house with off-grid features

For owner Andrew Stockwell, it all started with a photo of a tiny house on Instagram.

What followed was a five-year journey converting a van into a roadworthy, self-contained home – powered by solar panels and a 100-litre water tank – which he travels Australia in.

Read the story: Andrew Stockwell built a tiny home from scratch. Now, he’s touring Australia in it

7. Wine country tiny home holidaymakers can’t get enough of

This tiny home is in the top 5 per cent of Airbnbs worldwide, perhaps due to the unique design, which includes a sunken lounge.

It’s now for sale in Victoria’s Yarra Valley, where there are plenty of vineyards and foodie delights on your doorstep.

Read the story: A weatherboard and a tiny home for sale in Healesville for $1.4m-$1.54m

8. Modern studio next to a verdant internal courtyard

Owners Ringo Chang and Lena Madssen call their Federation terrace “House and a Half”: a nod to the secondary studio dwelling at the back of the home.

It’s hosted many friends, and Chang says, and it has the potential to become a long-term rental, an Airbnb, or even a place for their child or children to live when they grow up.

Read the story: House and a Half: The restoration of a tired Bondi terrace