The tiny house movement is increasingly topical, and tiny houses have been mooted as an innovative and sustainable way to improve urban housing affordability. But how valid is this claim? Few if any scholarly studies have investigated the tiny house phenomenon in any depth. This study used a combination of quantitative and qualitative methods to analyse the tiny house movement in Australia. An online survey was conducted in 2015 and again in 2017, as well as a series of semi-structured interviews with tiny house dwellers and tiny house builders. Finally, a case study of South East Queensland Australia investigated local government planning schemes and whether these permitted either temporary types of tiny houses (on trailers) or permanent tiny houses (as in granny flats). Interest in the tiny house movement had increased significantly from 2015, with more people living in tiny houses, and a number of builders now building tiny houses (mostly on wheels). Interestingly, there was high interest in tiny houses by single women aged over 50; as well as younger couples in their 20s. Local governments varied widely in their attitudes to tiny houses, with only a few accepting or even recognising that tiny houses exist as a legitimate housing form. The research concluded that tiny houses are a sensitive and innovative way to increase urban density and improve affordability. To move forward however, it is essential that local and state governments modify their planning schemes and local laws, with appropriate conditions, to permit this type of housing in Australian cities.