Boomers create big start for tiny home business
LONDON: Boomers are underpinning the fast growth of tiny home designers and builders around the world.
Fran and Daniel Huelsmeyer, who started Ruru Homes, have created 30 jobs and expanded to Motueka to upscale their new business.
Taking a big punt on a tiny home business in Tasman District, Fran and Daniel Huelsmeyer hoped they might sell up to six a year.
They were wrong. Within 12 weeks of putting the first home on the market, the couple’s Ruru Building Ltd business, known as Ruru Homes, had contracts to build 13 more.
“It’s gone ballistic,” Fran said. “The first one sold after three days … and I’d been thinking: ‘If we can’t sell it, maybe we can rent it out’.”
The Huelsmeyers, who started the tiny home business after bookings for their lodge dried up within two weeks of the Covid-19 lockdown, had 90 viewings in the first three weeks. The 13 tiny homes ordered by mid-April were going to buyers across New Zealand. “We’ve just delivered one to Hawke’s Bay.”
The Huelsmeyers had since recalculated and now estimated they could sell and deliver 30 to 40 homes a year. They had to quickly ramp up production to accommodate that expected increased demand. Staff and contractor numbers had jumped from four in January to about 30 as of Friday.
A new site was secured at Motueka as the increased production quickly outgrew the available space at the couple’s home, between Kaiteriteri and Mārahau, where the first units were built.
As well as sales of tiny homes to individuals, the Huelsmeyers were investigating the possibility of providing multiple dwellings for myriad uses such as workers’ accommodation.
Another possibility, which has piqued the interest of Tasman District mayor Tim King, is the provision of 20 tiny homes for a site at Motueka – a growing town with a shortage of affordable housing.
“We’ve signed an agreement with a landowner … with the option to build 20 small homes to be sold for affordable prices,” Fran said. “The idea is to build quality housing for a realistic price. People would own the house, and lease the ground for 34-35 years.”
Talks had been held with Tasman District Council staff and King about the possibility of a 20-unit site at Motueka and also about how to ensure all Ruru homes complied with the Building Code and could be relocated with a code compliance certificate.
“We want to do this with the council,” Fran said. “We’re building up a massive company very fast, so it needs to be right.”
Complying with the Building Code included the provision of extended warranties and some extra costs but meant the buyers could have confidence in the quality of the build.
Ruru offered two options – a 45 square metre home with two mezzanines for $180,000 or a 34 square metre single-storey property for $160,000. Initially, just the two-storey option was available; requests from buyers prompted the development of the single-storey design. Buyers paid a 10 per cent deposit when they ordered; the rest when the home was delivered.
“That opens the market to people who have to sell something first.”
Despite rising prices for materials, the Huelsmeyers hoped by replicating the approved designs each time, they could keep the costs down.
“A good system and structure will allow us the ‘Henry Ford’ effect, and we can build better, faster and more economic,” Fran said. “This will deliver affordable housing solutions to Motueka … and [the rest of] New Zealand.”
King said tiny homes could help meet the need for more housing.
“I think, there is no one solution for this [but] tiny homes have a role to play.”
King praised the Huelsmeyers’ early contact with the council over their plans and urged others to follow suit.
“Come and talk to us,” he said. “As this demonstrates, we are happy to work with people to see what can be achieved.”
The possibility of a 20-home development on leased land in Motueka showed what could be done with a willing landowner and a housing provider, working with the council and neighbours.
“Start as early as you can, building good relationships with people around you,” King said.
He described the development of Ruru Homes as a “double win” for Tasman District – a local employer, and a business providing a product the community needed and wanted.
