Yeah, that's the way. Portland has that kind of thing, but for food trucks (that are often built in Tiny Homes)… there is a Tiny Home hotel here, which is exactly as you describe... but because it's a business, absolutely no problems.
There was a case here where a couple was living in a tiny home in their parents backyard... and the council literally kicked them out even though there was a proper dwelling on the land and they obviously had permission to be there... that case villianised the council, the media made a thing about it so now the Mayor is trying to make it happen, since everyone is so angry about it and there literally isn't enough accommodation for all the people moving to Portland.
Sometimes it takes everyone losing their mind to create change...