The problem with the plan you're espousing in your second-to-last paragraph is that it's against the law in just about every single council area. This is because the councils charge land rates based on home size and occupancy - and caravans, campers and so on being occupied outside specified caravan and camping parks basically mess up the figures on which their cash flow depends. There's also things like sewerage and toileting to consider - most caravans (and indeed, most caravan-style Tiny Houses) don't really hook up to in-ground sewerage systems, which means people have to crap somewhere - and that means public health issues, which is where most of the rules effectively banning them live. Basically, the rules here are set up to catch you coming and going. There are a few people who live in car-campers in some areas - I know there's at least one guy who does so in Fremantle - but they tend to be fairly mobile, in order to avoid "move-on" orders from the council - and they're generally using public toilets and similar for facilities.
What we're seeing instead, at least in the city I live in, is what's called "infill" - basically, older properties were built on larger block sizes than modern ones are, and what's happening is the old houses are getting either torn down (and replaced with two or three smaller units, or there's what's called "battleaxe" blocks being created from the rear half of a larger block, with a separate house placed there.
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What we're seeing instead, at least in the city I live in, is what's called "infill" - basically, older properties were built on larger block sizes than modern ones are, and what's happening is the old houses are getting either torn down (and replaced with two or three smaller units, or there's what's called "battleaxe" blocks being created from the rear half of a larger block, with a separate house placed there.