How small is too small for a family home?

A house builder says small prefab homes are the best way to meet the Government's 10,000 houses a year building target - but can you actually live in one?

PrefabNZ says its tiny prefabricated homes are a great fit for the Government's Kiwibuild programme, but some Kiwis may wonder if under 100 square metres is really enough space.

So could tiny homes really be the solution to the housing crisis?

CEO Pamela Bell told Newshub the homes are perfect for a changing demographic, and people who may not need the traditional 200 square metre home.

"We've got a lot of young professionals and a lot of ageing people who would like to live really close to their families - literally in their own backyards," she told Newshub.

One tiny house expert agrees with the principle, saying even an entire family can fit in a smaller home.

Bryce Langston, occupant of a 15 square metre house, told Three's The Project your average four-person family could easily fit in a 70 square metre house.

"A 70 or 100 square metre home could certainly encompass all of the needs of a family," he said.

"Assuming that it's well designed - 'cause that really is the key thing, taking the needs of these families into consideration when you're designing the spaces."

Watch the video for the full The Project interview.