By Ayesha Rehman
More than one in three New Zealand families with children had adult children living at home in 2023, according to Stats NZ. That is up 27% on the previous decade.
Those families are now building in the backyard.
The majority of our New Zealand enquiries come from parents creating space for young adults who cannot yet afford to leave. It is the clearest pattern we have seen since entering the market, and it is now being reported across New Zealand media.
This piece covers what changed in the rules this year, what the demand data shows, and what a backyard studio actually is.
What the New Zealand Rules Changed in 2026
From 15 January 2026, a standalone single-storey home of up to 70 square metres can be built in New Zealand without a building consent or a resource consent.
The exemption comes with conditions. The structure must use timber or lightweight steel framing under lightweight roof cladding. A Licensed Building Practitioner must carry out or supervise the work. The council must issue a project information memorandum before construction starts.
Building and Construction Minister Chris Penk has been clear that the exemption applies "only to simple designs that meet the Building Code".
The savings are real. Associate Finance Minister Shane Jones puts them at up to $5,650 in direct costs and 14 weeks of processing time for each build. MBIE modelling expects the pathway to add almost 13,000 dwellings over the next decade.
More change is coming. In April the Government announced that consent-exempt granny flats will be able to be manufactured off site, and that structural insulated panels carrying a CodeMark certificate will join the approved materials. Those changes are expected by Order in Council in the third quarter.
Granny Flat or Backyard Studio? The Distinction That Matters
The two terms get used interchangeably. Under the rules they describe different things, and the difference decides what you can build.
A habitable standalone dwelling is one product. It is assessed under the 70 square metre exemption, with the framing, practitioner and council conditions that come with it. Floor area is only one of those conditions, and it is rarely the one that catches people out.
A backyard studio is another thing entirely. It is a room rather than a dwelling, with no bathroom, no kitchen and no plumbing. Used that way it sits in a different part of the rules.
"The word granny is quite a general term for it. We call them backyard studios." our New Zealand general manager Karel Bietje told OneRoof.
The practical advice is the same either way. Decide what the space is actually for, then confirm the requirements with your local council before you order anything. We will tell you where we think you stand.
The Demand Is Already Visible in the Data
OneRoof reports granny flat searches up 25% in six months, from a low base, and searches by land size more than doubled in the past year.
Auckland Council has already received 215 project information memorandum applications under the new pathway. It is too early for the council to assess the impact, but the direction is not ambiguous.
The honest counterweight is finance. "I think if this had come in when interest rates were 2.99%, it would be huge," Squirrel mortgage broker Emma Wallace told OneRoof. Families still have to make the numbers work, and for some, the rules changing is not enough on its own.
Why Families Are Choosing the Backyard
The pattern Karel, Elsewhere Pods representative, describes is specific. "We are seeing adult children moving in with their parents. They go off to university, and when they start working, they can't afford a place themselves, so they move into their parents' backyard."
It is not only affordability. Tiny Homes HQ's Matt Armstrong told OneRoof that attitudes have shifted too. "People used to be embarrassed about it. They said, 'Our kids need to go out into the world'."
Karel's read is that it is a structure. "This is the future. We are going to live in a community set-up going forward, where kids can't afford to go out on their own and live in their own house, and grandparents can't afford to retire and are moving back in with adult kids."
What We Supply in New Zealand
Bunnings New Zealand currently stocks two of our studios, the 2.7m and the 4m. Both are flat-pack, assembled on site. As Karel put it: "Build the whole kitset, and it will cost you a couple of beers for your mates, and it's done over a weekend."
Over time we intend to bring the full range into Bunnings. In the meantime the full range is available in New Zealand directly, with our own delivery and installation.
That range runs well beyond two studios:
- Studios from 2.7m to 12m in length at 2.4m wide, plus Double-Wide versions at 4.8m wide
- Tiny homes and granny flats, adding a bathroom, kitchen, plumbing and electric heat-pump hot water along with off-grid options
- Bedroom and ensuite arrangements configured to suit the customer rather than a fixed floor plan
- A trailer on wheels
- Add-ons including decking, a motorised pergola, and Nørge infrared sauna and cold plunge
Every pod includes Low-e treated glass on all glass panels, a sliding entrance door, an exhaust fan, gutters, split-shift AC, and a smart door lock as standard.
Key Takeaways
- Elsewhere Pods designs, manufactures and installs modular studios, granny flats and tiny homes, and supplies two backyard studio models through Bunnings New Zealand.
- From 15 January 2026, New Zealand allows a standalone single-storey home up to 70 square metres without building or resource consent, subject to framing, practitioner and council conditions.
- Stats NZ shows more than one in three families with children had adult children at home in 2023, up 27% on the previous decade.
- MBIE expects the consent-free pathway to add almost 13,000 dwellings over the next decade, and Auckland Council has received 215 applications under it.
- Bunnings New Zealand stocks the 2.7m and 4m studios as flat-pack kitsets. The full Elsewhere Pods range is available in New Zealand with our delivery and installation.
- Intended use and consent requirements should always be confirmed with your local council before ordering.
Thinking about a studio or granny flat in your backyard? Explore the range or chat to our team.
Frequently Asked Questions for NZ
Do you need consent for a granny flat in New Zealand?
Since 15 January 2026, a standalone single-storey home up to 70 square metres can be built without a building or resource consent, provided it meets the conditions. Those include timber or lightweight steel framing, lightweight roof cladding, work carried out or supervised by a Licensed Building Practitioner, and a project information memorandum from your council. Confirm your own situation with your council.
What is the difference between a granny flat and a backyard studio?
A granny flat is a self-contained habitable dwelling with a bathroom and kitchen. A backyard studio is a single room without plumbing. The two are assessed differently under the rules.
Can you buy a backyard studio from Bunnings NZ?
Yes. Bunnings New Zealand stocks the Elsewhere Pods 2.7m and 4m studios as flat-pack kitsets.
How long does a backyard studio take to build?
The Bunnings kitsets assemble in as little as two to four days. Pods we deliver and install ourselves go in faster, with studios installed in as little as two days and tiny homes in as little as four.
Can I get a tiny home with a bathroom in New Zealand?
Yes. Our tiny home configuration includes a bathroom, kitchen, plumbing and electric heat-pump hot water, and is available in New Zealand with our delivery and installation.
How big can an Elsewhere Pod be?
Lengths run from 2.7m to 12m, in a standard 2.4m width or Double-Wide at 4.8m. Custom widths are available on request.