Rotorua residents struggling with overcrowded homes are considering renting portable cabins for extra sleeping space.
The portable cabins, which are similar in size to a small bedroom, can be rented for about $60 a week.
They come with a fire alarm and are delivered to people's properties. Most are fitted with carpet and can be hooked up to a power source.
Rotorua portable cabin suppliers say people are renting them out for offices at home, using them as extra rooms to rent out to students or using them as extra space for over-crowded homes.
However, budget advisers say there are more practical housing options available.
Te Runanganui o Te Arawa budget service adviser Rahera Reweti said at least eight people had inquired about hiring the cabins since December.
The cheapest cabins, which cost $55 per week, was still expensive for many people, she warned.
Most people who inquired about the cabins were low-income earners in their 20s, Ms Reweti said.
These clients were instead encouraged to apply for accommodation with Housing New Zealand, she said.
"We apply for a state house which gives them affordability to to move into that property and maybe then get the extra added room because it equates to the same amount of money that they're paying in a private or in a real estate home."
Pearl Pavitt of the Rotorua Budget Advisory Service urged people to consider the implications of cabin-renting before making a decision.
Issues with security and bathroom access would need to be carefully considered, she said. And for $60 each week, renters would likely find it easier to upgrade to a larger property, Mrs Pavitt said.
Figures from the Government's housing and building service showed the average difference in the median market rent between two and three-bedroom homes in Rotorua was $48 in the six months to January. The difference rose to $68.25 for three and four-bedroom homes.
Local portable cabin suppliers wouldn't reveal how many units were rented in Rotorua due to market competition issues, however both companies approached by the Rotorua Daily Post said they were "popular".
Ngongotaha-based RoomMate Cabins franchise owners David and Jill Philps said the majority of their clients battled with space issues in their homes. "We've just had an inquiry from a lady who's got 12 children living in a garage," Mrs Philps said.
John Weston of Just Cabins Rotorua and Taupo said nearly all his cabins were rented out. "We've got people renting them for offices at home ... and we've got people who have put an extra couple of cabins on their property and they're renting the cabins to students or people staying from overseas."
They were also popular options for parents whose teenage children had returned home after studying and needed their own space, he said.
Weekly rent rates for Just Cabin units ranged from $59 to $85 normally, Mr Weston said.