Amid Australia's worsening housing crisis, homeowners are turning to DIY backyard pods and cabins as a quick and affordable solution to create extra living space. Hardware giant Bunnings has expanded its range to include compact, flat-pack dwellings that can be assembled in just days, offering a new, affordable option for families and investors. The products are part of a broader move into modular and pre-fabricated housing, with demand for tiny homes and DIY studios rising nationwide as Australians face high property prices and a shortage of traditional housing. Bunnings now lists Elsewhere Pods’ modular units online and in store, with prices starting at $26,100 for a 2.7m by 2.4m room and reaching $42,900 for a larger 4m by 2.4m studio. The pods arrive as flat packs with pre-fabricated panels, insulation, and eaves, and can be locked and made waterproof, all without requiring a building permit in some areas. "They provide an affordable way for customers to add functional space to their homes," Bunnings chief operating officer Ryan Baker said. The rise of modular backyard dwellings comes as the nation’s housing crisis deepens. Traditional detached homes can take a year or longer to build, while soaring costs have left many Australians searching for quicker, more cost-effective solutions. State governments in Queensland and Victoria have relaxed planning rules for secondary dwellings, while the federal government’s Housing Accord aims to deliver 1.2 million new homes by 2029, though forecasts suggest the nation could fall short by more than 400,000. Elsewhere Pods founder Matt Decarne said part of the appeal lies in the units’ speed and simplicity. "Many tiny homes, including some of our designs, don’t trigger planning or building approvals, which is a huge drawcard," he said. According to RealEstate.com, pre-fabricated and kit-built housing is gaining momentum across Australia, with market analysts projecting the sector will grow about seven per cent annually to reach $18bn by 2030. Rising demand is being driven by families, investors, and regional projects, with modular homes increasingly used for off-grid and eco-tourism purposes. Sales of modular units like Elsewhere Pods have already surpassed $9m, with nearly a third of purchases going to these projects. The modular pods are versatile, often used as home offices, teenage retreats, or guest rooms. They are also increasingly popular with Airbnb and regional property investors, offering a fast, energy-efficient solution compared with traditional construction. As the housing crisis persists, DIY backyard pods and cabins are becoming a popular and practical choice for homeowners seeking extra space.
DIY Backyard Pods: Affordable Housing Solution for Australia's Crisis | Bunnings Flat-Pack Homes (2026)
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