Tiny homes are gaining popularity worldwide as an affordable, sustainable housing option, but how easy is it to build or live in one legally in the Western Cape? This ranking compares municipalities based on zoning regulations, infrastructure, affordability, sustainability efforts, and accessibility to essential services to find the most tiny home-friendly places to live in the Western Cape.
1. Overstrand Municipality – The Tiny Home Leader
Hermanus, Kleinmond, Gansbaai
✅ Official tiny home policy (first in South Africa)
✅ Legalized tiny homes under 27 m² with clear regulations
✅ Allows permanent & mobile tiny homes in designated zones
✅ Supports sustainability (solar, off-grid living accommodated)
✅ Moderate affordability compared to Cape Town
❌ Neighbor consent required for tiny homes in residential zones
Overstrand is the most tiny-home friendly municipality in South Africa. In 2022, it introduced a Tiny House Policy allowing tiny homes as permanent dwellings, mobile homes in resorts, and even “transitional tiny homes” for temporary or emergency housing. It actively encourages energy-efficient and small-footprint housing, making it the best place for tiny home living.
2. City of Cape Town – Slowly Becoming Friendly
Cape Town metro & surrounding suburbs
✅ Progressive zoning changes allow multiple small dwellings per plot
✅ Affordable rental & micro-unit incentives
✅ Urban infrastructure available for tiny homes
✅ Encourages renewable energy integration
❌ No official tiny home category yet
❌ Mobile tiny homes still not widely permitted
Cape Town is becoming more friendly to tiny homes with recent zoning amendments allowing up to 8-12 micro-units per residential plot. This indirectly supports tiny home development, though mobile homes and stand-alone tiny houses aren’t fully legalized yet. Infrastructure is excellent, and the city actively supports affordability and sustainability.
3. Swartland Municipality – Some Flexibility
Malmesbury, Riebeek-Kasteel, Darling
✅ Zoning allows second dwellings on most plots
✅ Growing interest in sustainability in some areas
✅ Lower property prices than Cape Town
❌ Tiny homes still classified under standard building codes
❌ No policy for mobile or ultra-small homes
Swartland has some potential for tiny homes, as its zoning allows backyard cottages and additional dwellings. The artsy town of Riebeek-Kasteel shows openness to sustainable living, but official policies remain conservative. A small cottage could work here, but mobile or ultra-small homes would face barriers.
4. Drakenstein Municipality – Limited Tiny Home Flexibility
Paarl, Wellington
✅ Zoning allows secondary dwellings & backyard flats
✅ Good infrastructure and services
✅ Affluent areas may welcome eco-friendly designs
❌ No specific tiny house policy
❌ Building codes still apply, limiting ultra-small dwellings
Drakenstein allows small backyard homes, but a dedicated tiny home under 27 m² still needs special engineering approval. The area is expensive, but smaller dwellings could be a step toward affordability.
5. Stellenbosch Municipality – Potential, But No Framework Yet
Stellenbosch, Franschhoek
✅ Has micro-apartment & student housing demand
✅ Progressive community attitudes toward sustainability
✅ Good urban infrastructure
❌ Strict heritage & building regulations
❌ No explicit allowance for tiny homes
Stellenbosch has a progressive population, but no municipal support for tiny homes. Affordability issues and student housing demand might push it toward zoning changes in the future.
6. George Municipality – Conventional, But Densification is Happening
George, Wilderness
✅ Allows backyard dwellings
✅ Well-developed services
✅ Growing focus on sustainability
❌ No tiny home-specific regulations
❌ Backlash against non-traditional housing in some areas
George has decent infrastructure and zoning flexibility, but tiny homes remain outside official planning considerations. Backyard units are an option, but stand-alone tiny homes face bureaucratic challenges.
7. Bergrivier Municipality – Some Potential in Coastal Areas
Piketberg, Velddrif
✅ Possible coastal resort opportunities for tiny homes
✅ Moderate affordability
❌ No zoning for tiny homes in residential areas
❌ Permanent mobile homes not allowed
Bergrivier has tourism potential (especially in Velddrif) where tiny vacation cabins might be permitted, but living in a tiny home full-time isn’t recognized yet.
8. West Coast District – Unfriendly by Omission
Matzikama, Cederberg, Saldanha Bay, Swartland
✅ Some land affordability
❌ Conservative community attitudes
❌ No policies supporting tiny homes
West Coast towns still rely on conventional building practices. While Saldanha Bay has growth potential, it hasn’t adapted zoning for tiny homes yet.
9. Cape Winelands Municipalities – Stuck in Tradition
Witzenberg, Breede Valley, Langeberg
✅ Affordable land in some areas
❌ Rigid zoning and building laws
❌ No public discussion of tiny homes
Cape Winelands municipalities prioritize standard RDP housing and have no tiny-home provisions. They would likely treat a tiny house as an informal dwelling unless formally approved.
10. Hessequa & Mossel Bay – Resort Use Only
Riversdale, Heidelberg, Mossel Bay
✅ Some caravan parks allow tiny-home-style rentals
❌ No residential zoning for tiny houses
❌ Permanent mobile tiny homes not allowed
Tiny homes can exist in holiday resorts, but municipalities don’t support them as full-time residences.
11. Bitou & Knysna – Only Possible as Holiday Homes
Plettenberg Bay, Knysna
✅ Tourist-friendly areas might allow eco-cabins
❌ No zoning for permanent tiny homes
❌ High property prices make land costly
Tiny homes in Bitou & Knysna would only be allowed in tourism zones, not as full-time residences.
12. Central Karoo Municipalities – Unfriendly by Default
Prince Albert, Laingsburg, Beaufort West
✅ Some land affordability
❌ No policies supporting tiny homes
❌ Limited infrastructure in rural areas
Karoo towns haven’t engaged with tiny housing concepts and focus on basic service delivery rather than alternative housing.
13. Cape Agulhas & Swellendam – Least Friendly
Bredasdorp, L’Agulhas, Swellendam
✅ Eco-tourism potential
❌ Conservative zoning laws
❌ No legal recognition of tiny homes
Cape Agulhas and Swellendam lack policies for tiny homes and prioritize heritage conservation or traditional housing.
Conclusion: Where to Live Tiny in the Western Cape?
- Best Option: Overstrand – Fully legal, clear regulations.
- Strong Potential: Cape Town – Zoning shifts favor smaller housing.
- Moderate Potential: Swartland, Drakenstein, Stellenbosch – Some flexibility.
- Tourism Use Only: Bitou, Knysna, Mossel Bay, Hessequa – Tiny homes as holiday rentals.
- Least Friendly: Cape Agulhas, Swellendam, Central Karoo – No support for tiny homes.
For a fully legal tiny home experience, Overstrand is the best bet, while Cape Town is moving in the right direction. Other municipalities will need policy changes before becoming viable for tiny home living. If you’re curious about tiny home living in South Africa, check out our other post: Is tiny home living for me?, or our list of the best tiny home builders in South Africa.
