At a time when Newfoundland and Labrador are suffering from a shortage of affordable housing and shelter, a developer in Stephenville believes he has the solution that could change the course of events.

Shawn Hickey is working entirely on tiny houses – smaller and specially designed dwellings that have a smaller space, are affordable, and can be built much faster than a regular house or residential building, depending on the size of the construction crew.

Hickey and two of his employees have built 12 tiny houses in Stephenville since 2018, without grants or government subsidies. He owns the land and the units and rents them to a group of tenants, including seniors and young professionals.

On Monday, he said that if you live on $1600 or $1700 a month, you can live in a tiny house, you can buy a car, you can buy groceries, and you can live comfortably.

As the developer, and now the owner, Hickey sets the rental prices, with the lowest rent currently at $375 per month. The house sizes range from 192 square feet to just over 700 square feet, on plots of land that are 25 feet wide.

The houses are located on foundations, have paved walkways, storage sheds, covered lawns, and are connected to the sewage and electrical networks in the community. They also have full bathrooms and come in one-bedroom or two-bedroom models.

At its peak, Hickey’s three-person crew built three tiny houses annually.

This strategy could soon make its way east to the province’s largest population center, where the city of St. John’s has applied for $18 million in federal funding through the Housing Accelerator Fund, managed by Canada Mortgage and Housing Corporation. This application includes funding for the development of tiny houses and backyard suites – accessory buildings built on already developed properties.

A housing needs assessment report commissioned by the city and released in August also stated that St. John’s was experiencing a shortage of between 1025 and 1335 units at that time, based on population estimates. The report predicted that the housing shortage would grow to between 2740 and 3770 units by 2028 and to between 3610 and 5310 units by 2033.

In March, the city approved the development of a tiny house on an existing property on Leslie Street. Ron Elsworth, the city’s housing head, said he expects more applications once the city receives the $18 million in federal funds that developers and community groups can apply for.

Elsworth also added that the city’s application includes funds to build at least 50 tiny homes over three years. Overall, the city hopes that 475 units will be built with the help of federal funding.

There is also a focus from both municipal and provincial governments on making city land available for this type of development. Elsworth said this option is on the table, but developers must use the land to provide affordable housing options, not another expensive subdivision.

In a press release on Monday, the provincial government issued what it calls an inventory of vacant provincial land in the St. John’s metro area that can be made available for the development of affordable rental housing.