A woman and her child who have fled domestic violence; a man left without a home from a fractured relationship; a young person trying to overcome a drug and alcohol addiction.

These are the people that not-for-profit organisation Tiny Homes Foundation hope to help in a new pilot project on the New South Wales Central Coast.

Australia's first Tiny Homes project is set to begin construction next to Gosford Hospital in the coming months.

Each home will have insulated panels and be self-supporting, allowing for easy construction. ( Supplied: Tiny Homes Foundation )

The approved plan will provide four to six single-occupancy units, a common laundry, lounge and vegetable garden.

Each house can be built for less than $30,000 and be prefabricated or flat packed for easy assembly.

They will be 14 square metres large and include a bathroom, kitchen, sleeping area, living area, a small deck and rainwater tank.

"We're not trying to build the next biggest charity, we're just trying to solve homelessness," David Wooldridge, chief executive of Tiny Homes Foundation, told 702 ABC Sydney.

"All of us are only just two or three steps away from homelessness; you just need a couple of major setbacks in your life to hit you simultaneously."

Creating a long-lasting solution

More than 100,000 people are homeless at any given time in Australia.

They may be people sleeping on the street, rough sleepers, couch surfers and, according to Mr Wooldridge, "people who are transitioning out of domestic violence situations or other situations".

Sorry, this video has expired Homelessness on the increase

Mr Wooldridge works in the finance sector but spends much of his free time out on the street volunteering with homeless support groups.

He said he was partly inspired to start Tiny Homes Foundation out of his Christian faith and the philosophy that we should "treat others in a way you'd like to be treated yourself".

"[The foundation is] something that came out of working with rough sleepers and being out at all hours of the morning handing out sleeping bags and food and just sitting with people and spending time with them, because loneliness is a big issue for them," he said.

"I wanted to put back into something that was constructive, that would last and have a lasting impact rather than have a bandaid solution."

Tiny Homes a 'drop in the ocean'

The foundation will work with local social housing provider Pacific Link, which will be responsible for allocating tenants to the homes.

Those tenants would then pay a small rental fee out of their government support payments.

The average rent is about $51 per week.

Coast Shelter is a not-for-profit social housing and support group on the Central Coast. ( Facebook: Coast Shelter )

Shayne Silvers, operations manager at social support organisation Coast Shelter, said while the Tiny Homes project might help a young person transition out of a refuge, she said the plan for only a handful of single-dwelling units was "a drop in the ocean".

"I don't think they're ideal for families," Ms Silvers said.

"The homelessness situation is so large, especially here in a regional area where we have a lot of transient people that come up from Sydney.

"The women that come in will be a mum and three [kids]. Those sort of homes would not be suitable for larger families."

Ms Silvers said Coast Shelter had turned away 1,238 women this year as there had been no vacancies in the refuges.

She said public housing was at capacity and some people on the Central Coast could be on the waiting list for 13 to 15 years before being allocated a home.

Despite that, Ms Silvers said Tiny Homes could help alleviate more of the homeless if the pilot project was successful and could be set up on other vacant land.

"My mantra is: If we can help one, we've succeeded," she said.