Considering a minor dwelling? Here’s why prefab works

News & Updates Considering a minor dwelling? Here’s why prefab works
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14th Jul 2025

What if there was a way to boost your property’s value and provide a new income stream – without subdividing?

There is. Enter the minor dwelling.

Minor dwellings (such as granny flats) are a smart way to unlock more value from your property. It’s why the New Zealand Government has been considering changing the regulations around minor dwellings. Their proposed changes will reduce the red tape around consents and make it easier to obtain approvals.

It’s also why you might build a minor dwelling on your own property. But even with fewer hoops to jump through, the question still remains: will you take the prefab or traditional route?

We’re going to explore the differences between prefab and traditional, why prefab minor dwellings make sense – and how this construction approach will give you a smarter, faster build.

But first: what is a minor dwelling (and who are they for?)

Contemporary home with ample outdoor space.

A minor dwelling is a self-contained residential unit. Although it’s located on the same title as the main dwelling, it’s a completely separate building – usually with its own kitchen, bathroom and living/sleeping areas. Typically, they are around 65m², though each council has its own size limits.

A minor dwelling is for anyone who wants to:

  • Create more living space – the perfect solution for extended family, friends and guests
  • Increase property value – without embarking on a large renovation
  • Boost rental income – ideal for retirees (or anyone wanting another source of revenue)
  • Provide a home office away from the main house.

 

Prefab vs traditional: how are they different?

For a deep dive, read our blog comparing prefabricated construction with traditional here.

Prefer a quick snapshot? Check out the table below:

Feature Prefabricated build Traditional build 
Cost predictability Cost-certain. Prone to budget overruns.
Likelihood of delays Minimal – construction happens offsite in a controlled factory environment. Very possible, especially in locations vulnerable to extreme weather.
Site disruption Minimal – offsite construction means less activity onsite. Significant – builders are onsite for months on end.
Sustainability Minimal waste – due to precision factory cutting and less work done onsite. More waste – no streamlined factory process and more emissions from deliveries etc. to the site.

 

Why prefab works for minor dwellings

Construction can be noisy, disruptive and stressful – and never more so than when it’s happening in your backyard! By choosing prefabricated construction, you’ll enjoy a far smoother ride.

That’s because prefab construction gives you:

  1. Cost-certainty

When everything is factored in cost-wise to your build, you get financial certainty around your project. Much easier for managing budgets!

  1. Quicker build times (and quicker ROI)

Offsite construction means you don’t need to worry about weather delays slowing everything down. Your prefab dwellings will take less time to build – which means you can start earning rental income (or enjoying extra space) sooner. 

  1. Less disruption onsite

Offsite construction means you aren’t faced with the mess and chaos of tradespeople turning up each day. No vehicles blocking the road  – and minimal disruption to your existing dwelling onsite.

  1. High-quality builds that last

Our experienced builders and quality assurance teams oversee your build inside our controlled factory. Your prefabricated minor dwelling is built using quality controls that onsite construction struggles to match – giving you a durable home that can withstand New Zealand’s diverse environment. 

  1. Sustainable and energy-efficient homes

Factory precision also means less materials waste. And, because Advance Build homes are delivered fully built, there’s far less environmental impact onsite. 

Fun fact: Our Waipapa factory-facility is powered by solar, reducing our overall emissions and eco footprint!

What role will prefab play in the future of housing in New Zealand?

Today, we’re dealing with a dual challenge: a housing shortage coupled with a cost-of-living crisis. Of course, there are no simple answers. But the ability to quickly build minor dwellings is a step towards alleviating those challenges – both now and down the track.

We know prefab minor dwellings are key to:

  • Faster builds – increasing housing supply quickly and efficiently.
  • Smarter urban intensification – a low impact way to boost housing supply.
  • Optimal land use – making better use of a property’s underutilised sections (without subdividing).
  • Greener construction – factory construction means less waste, site disruption and overall environmental impact.

And, as more councils take on the Government’s potential recommendations around minor dwellings, the prefab approach will become increasingly commonplace. After all, quick, cost-certain and high-quality prefab houses are the future of smart homebuilding.

Want to build a minor dwelling on your property?

Do it the faster, smarter and less disruptive way: with prefab. 

Advance Build has helped many Kiwi families design and build modern, livable prefabricated minor dwellings to suit their lifestyles. 

You can start your own journey by speaking to our team today. Or, explore our flexible floorplans here.

FAQs

Got some questions about prefab minor dwellings? Here are some of the most frequently asked ones.

Do I need building consent for a prefab minor dwelling?

Yes.

You’ll currently need a building consent for any unit if it’s being connected to onsite services (e.g. sewer, water, power) and is over 30m². 

If you’re building a single-story detached unit  – such as a sleepout, shed or greenhouse with no kitchen or plumbing facilities – you won’t need a building consent if it’s under 30m².

You may also require a resource consent if your project falls outside your council’s district plan – e.g. in terms of site size, coverage or proximity to boundaries. We recommend checking with your local council before you start planning. 

How is the home transported to my site?

Once your home has been constructed in the Advance Build factory, it travels on a house moving truck to site. When it arrives onsite, the home is positioned onto the foundations and connected to services.

Can I customise one of your floorplans?

Yes! Advance Build designs are fully customisable. Our team can help you tailor a floorplan to suit your needs and lifestyle – whatever they are. 

Hear From Our Clients

From Karikari Peninsula to Kumeu, inlcuding Bayley's Beach and Mangawhai! We have been building homes for customers from Auckland to the Far North regions of New Zealand for over 15 years.