CAMBRIDGE – Local businesses in the tiny home market say the approval of a bylaw that would allow the small dwellings is much-needed and long-delayed.

NOW Housing, a company based in Cambridge, has been building homes out of shipping containers for the past year and hopes the change will help meet the demand for affordable housing.

"So with smaller units being legalized now, there was a lot of times where you couldn't build anything smaller than 400 or 500 square feet, and now they've made it that you can build 145 square feet plus bathroom," explains Matthew Lubberts, the company's president.

"So you're talking well under 200 square feet to make a dwelling unit now."

Their tiny homes consist of a bedroom, bathroom and living room area.

Lubdertz says part of the affordability component is that most units are identical, which saves on time and cost.

The units generally come fully furnished and just need to be hooked up to electricity and water.

The costs range from around $28,000 to more than $100,000 for a five-bedroom unit.