Torrens University: Analyzing Tiny Houses Market Gaps in Australia

This report analyzes the market gaps and opportunities for Tiny Houses in the Australian housing market. It identifies unmet customer needs, particularly concerning affordable housing in urban centers like Sydney, Melbourne, and Brisbane, where high rental rates strain low-income earners. The report highlights opportunities for Tiny Houses to provide affordable and spacious housing options for families and students near universities. It also addresses the issue of overcrowding in affordable areas and suggests that Tiny Houses can offer better living conditions and alleviate congestion. The analysis considers factors like income levels, preferences, and age groups to tailor the company’s marketing niche and exploit gaps related to high rent, limited housing near workplaces, and poor conditions in cheap apartments. This document is available on Desklib, where students can find various study resources.

Running head: ANALYSIS OF MARKET GAPS IN AUSTRALIA HOUSING MARKETS 1
Analysis of Market Gaps in Australia
Name of Student
Name of Institution
Analysis of Market Gaps in Australia

ANALYSIS OF MARKET GAPS IN AUSTRALIA 2
Unmet customers need, or a group of potential customers is what defines a
market gap or opportunities. Tiny houses is an Australian company that offers
small homes for the people who desire to live with simplicity and economical kind
of life considering their low income. The company can derive different
opportunities in Australia to strengthen and enhance the company’s growth. The
following is a critical analysis in Australia about house provision opportunities.
The company’s marketing niche should be influenced by such factors as the
customer's income level, their preferences and the age group. In Australia,
relevant studies as noted by Martin and Troy (2017) shows that most of the people
living in the urban centres are complaining because of high rates of rent. In
Sydney, for example, most of the people earn an average income. Due to this
factor, most of them can only afford average rent. The study continues to shows
that the problem of unaffordable rent is too deep and widely spread in Melbourne
and Brisbane. The study also claims that there are few housing units in those
capitals (Martin and Troy, 2017). The tiny house company can use these gaps to
their advantage and build more homes in these towns and charge affordable rates.
The company should also consider building spacious houses which even a single
parent living with their children can occupy and still afford to pay the rent.
Tamara, a single parent from Sydney, narrates her struggle in paying rent
considering her low income of 50000$ where she spends almost half of it in paying
rent. This is despite the fact that her house is the cheapest in the area where she
resides (Taylor, 2017). This research connotes various opportunities for any
company that can build many spacious and affordable. To this extent, therefore,
Tiny house company have been favoured by the underlying factors.

ANALYSIS OF MARKET GAPS IN AUSTRALIA 3
.
There is another group of people who have been affected by housing issues.
This group comprises of university and college students. The houses that have
been built near universities and colleges are not only a few, but they are also
expensive. Because the students are not earning, it has become a challenge to
them to access affordable housing. The students who are in their thousands are
yearning for some cheap and affordable houses. Tiny housing company should
utilize this opportunity by building additional but affordable houses near the
institutions of higher learning to bridge the existing gap (Butler, 2017). This could
also attract both the teaching and non-teaching staff to rent houses near their
place of work.
In addition to the already discussed opportunities, there is another factor of
crowding. It is evident that in Australia, the areas perceived to have affordable
houses are overcrowded. This has a direct correlation with health complication due
to the unhealthy conditions associated with overcrowding. If more affordable
houses are built, most people are willing to relocate from the crowded areas to
avert the health complications and ease congestion (Anderson el., 2017. This gives
the tiny housing company an opportunity to invest and utilize the market gap in
Australia. The company should consider providing residing environments which
are not overcrowded, in good living conditions and provide affordable housing
units.
The opportunities in the Australian housing market is mostly brought about
by the high rates of rent as compared to low income earned by the people. There
are also few houses that are available near the workplaces. Additionally, the
difficulties brought about by inaccessibility of school from home and also the poor

ANALYSIS OF MARKET GAPS IN AUSTRALIA 4
condition of the cheap apartments. The company can exploit all these opportunities
to expand their market and grow their business.
References
Andersen, M. J., Williamson, A. B., Fernando, P., Wright, D., & Redman, S. (2018).
Housing conditions of urban households with Aboriginal children in NSW
Australia: tenure type matters. BMC public health, 18 (1), 7 Available at
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5540447/ (Accessed April 22,
2018)
Butler, J., (May 17, 2017). Even average Austrians are being priced out of
Austrians cities. HuffPost. Available at:
https://www.huffingtonpost.com.au/2017/05/16/even-average-families-are-
being-priced-out-of-australias-cities_a_22094450/ (Accessed April 22, 2018)
Martin, C., & Troy, L., (May 17, 2017). Two pictures of rental housing stress and
vulnerability zero in our area of need. The Conversation. Available at:
https://theconversation.com/two-pictures-of-rental-housing-stress-and-
vulnerability-zero-in-on-areas-of-need-77714 (Accessed April 22, 2018)
Taylor, A., (November 28, 2017). Sydney renters continue to feel the pain of
property market. The Sydney, morning herald. Available at:
https://www.smh.com.au/business/companies/sydney-renters-continue-to-
feel-the-pain-of-property-market-20171128-gzue0r.html (Accessed April 22,
2018)

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