Hummingbird Micro Homes is building on a plot of land it owns just outside of the city, and hopes the development will attract small families struggling to buy or rent a home in the current market.
"We're not selling the plots of land, but they are basically for families to live in their homes at a very attainable price range," said Hummingbird's Ally Blake.
The homes start as small as 300 square feet and range to 600 square feet. Five homes will be built by summer, and available to rent, and the company plans to sell, or rent as many as 31 homes on the property by the end of next year.
Rent starts at $750
Terrace, along with much of Northwest B.C., is grappling with a housing crisis with too few homes to match a growing population. The city created a housing action plan back in 2012, with an emphasis on creating housing for low income residents.
The micro-homes aren't the answer to the housing crunch, says Blake, but she hopes they will help.
"We're not going to solve the problem overnight, but I think we're definitely going to help people who have found it challenging to find attainable housing."
Rent for the homes starts at $750, Blake said, and the company's website indicates the cost of buying one of the units starts at $36,900 plus GST.
"Our homes aren't for everybody, we realize that, but for people who are preparing to transition into living in something similar they make home ownership much more attainable."