Hi. While I know of the story you are talking about I am not aware of the specifics. And hopefully no bad consequences. Beyond blue also has a few pages on their website about covid as well.
In relation to yard sizes ... Back in 2000 in the city where I live the typical yard size was 400m which makes a separate space harder. Or about 500m from where I live the houses are replaced with apartments.
I don't really have a solution and to some extent I am resigned to the thought it will be around for a while and everyone has to co-operate with each other and consider each other so that we can get through this challenging time.
At the same time it sounds like you have a solution in your situation which is a goal to aim for. Or what about tiny homes? Not sure how compare with your shed idea.
Lastly I hope I am on the right track with your post. If not you will tell me. :)
Listening to you.