Our tiny homes in Australia are more often than not dwarfed by the parcel of land they are placed on. The reason for this is that Council regulations mean that a tiny home can only be placed on a suburban or urban property temporarily, or alternatively, its on a rural or semi-rural property as a 'secondary dwelling'.
There are numerous other reasons that tiny homes are not yet favoured as a regular form of housing in suburban areas.
Europeans have been building tiny homes for a long long time, by virtue of the fact that space is at a premium. The cities and towns are great examples of medium and high density housing with character. Smaller outbuildings or buildings in locations such as riverside or canalside have been legally converted and occupied as residential housing for aeons.
In northern European areas, having a smaller home to heat in a long cold winter is a real bonus. Ikea, the Scandinavian furniture company, is a great example of adapting home furnishings and homewares for smaller homes by using innovative and stylish design which is also sustainable.
These are some examples I have found so far on my travels. These two are on the canal in Leipzig, Germany.