Are Cabins a Good Investment? (2026)
When you start looking into the cost of a tiny home in Australia, the prices jump all over the place — from $50k to well over $150k. As a tiny home builder who’s delivered countless custom homes, we see the same questions come up again and again: What does a tiny home actually cost? What drives the price? And what should I budget for beyond the build itself?
This guide breaks down the real numbers, the hidden costs people often forget, and whether a tiny home makes financial sense, whether you’re planning to live in it or add one to your property as a luxury rental or Airbnb.
How a Well-Designed Accommodation Cabin Can Generate Strong Returns
Across regional Australia, short-stay accommodation continues to grow in popularity. Guests are increasingly searching for places that feel unique, private and connected to nature — and well-designed cabins are proving to be one of the most successful accommodation types.
For property owners with space on their land, adding a thoughtfully designed cabin can transform unused areas into a high-performing asset that generates income while enhancing the character of the property.
This opportunity is particularly appealing for wineries, farms, rural estates and boutique tourism properties, where guests are already travelling to experience the surrounding region. Offering accommodation allows visitors to extend their stay and connect more deeply with the property itself.
Below is an example of how a modern accommodation cabin can perform as an investment.
Example Cabin Investment
A fully self-contained architectural cabin designed for short-stay accommodation.
Build Cost:
$180,000
(Site works, landscaping and service connections vary depending on the property and are not included in this example.)
Average Nightly Rate
High-quality accommodation with thoughtful design and beautiful finishes can achieve strong nightly rates.
Across many regional areas of NSW, well-designed cabins commonly average around: $450 per night.
Weekends and peak periods often achieve significantly higher rates.
Occupancy
Cabins that are well designed, photographed well and marketed effectively often achieve 60–75% occupancy across the year.
For this example we’ll use:
70% occupancy
Equivalent to approximately: 255 nights booked per year
Annual Revenue
255 nights × $450 = $114,750 annual revenue
Estimated Operating Costs
Typical operating expenses include:
- cleaning
- utilities
- booking platform fees
- maintenance
- insurance
A reasonable allowance is 30% of revenue.
$114,750 × 30% = $34,425 operating expenses
Net Annual Income
$114,750 revenue − $34,425 operating costs = $80,325 net annual income
Investment Payback
Based on a $180,000 cabin investment, the estimated payback period is:
Just over 2 years. After this point, the cabin continues generating income each year while adding value to the property.
Researching Your Local Market
If you’re considering adding accommodation to your property, it’s wise to begin with a deep dive into your local accommodation market.
Spend some time exploring:
- what types of accommodation currently exist in your area
- what nightly rates similar listings achieve
- how frequently they appear booked
- what experiences they offer guests
You may start to notice patterns.
Perhaps there are plenty of standard cottages but very few architecturally designed cabins, or maybe there is a lack of accommodation that focuses on wellness, privacy or connection to nature.
Identifying what is missing from the local market can help you create something fresh and unique that stands out to guests.
Often the most successful accommodation properties are those that offer something different to what already exists in the region.
Features That Can Increase Nightly Rates
Certain features can significantly increase both nightly rates and booking demand by elevating the overall guest experience. Some of the most successful accommodation properties include:
Private Saunas
A beautifully designed sauna can transform a simple cabin stay into a wellness retreat experience. Many property owners are now adding Big Fig-built saunas alongside their accommodation to create a relaxing health-focused getaway for guests.
Outdoor Baths
Freestanding outdoor baths overlooking nature are extremely popular and photograph beautifully for accommodation listings.
Fire Pit Areas
A simple but powerful addition — guests love the experience of sitting around a fire under the stars.
Large Architectural Windows
Framing views of the surrounding landscape can dramatically enhance the feeling of space and connection to nature.
Warm Natural Interiors
Timber linings, soft lighting and thoughtful design help create a memorable atmosphere that guests connect with emotionally.
When these elements are combined well, cabins can often achieve nightly rates well above the regional average, particularly on weekends and peak seasons.
Why Work With Big Fig Tiny Homes
At Big Fig Tiny Homes, we specialise in building high-end accommodation cabins designed specifically for the short-stay market.
Over the years we have worked with many property owners creating boutique accommodation experiences, and we understand how important it is to design buildings that not only function well but also market beautifully.
Our cabins are built with:
- carefully considered layouts
- premium materials and finishes
- strong architectural character
- durable construction suited to Australian climates
Because we build many luxury accommodation units, we also understand which design features help properties stand out and attract bookings.
Thinking About Adding a Cabin to Your Property?
If you have space on your property and are considering adding short-stay accommodation, it can be a very rewarding investment when designed and executed well.
Whether you're planning a single cabin or exploring the idea of multiple accommodation buildings, we’d be happy to talk through your ideas and help you understand what might be possible on your property.
