Tiny homes have become all the rage over the past few years. With the drive to become more energy efficient and lower carbon footprints, simpler living has become more popular.
It is also a more affordable home when compared to traditional properties. Following the 2008 financial crisis, many people became unemployed or entered foreclosure. Thanks to the pricing of tiny homes, you are investing less money in your living accommodation, and you face fewer ongoing costs as well.
If you like the sound of reducing your outgoings and downsizing your living situation, a tiny home might be a great fit.
What is a Tiny Home?
Generally, a tiny home is a property that is between 100 and 600 square feet. Any larger than that, and it's just a small home. This compares to the average family home which is 2,261 square feet, based on data from 2020.
What is the Cost of a Tiny Home?
Whenever you are considering a move, the costs won’t be far from your mind. While buying this type of home is normally going to be cheaper than a traditional property, the pricing of tiny homes will be important. So how much does a tiny home cost? The cost of a tiny house is covered in great detail at Maximum Real Estate Exposure.
A lot of the tiny house cost will depend on the construction of the home and any customization you want to add. Because of these factors and more, there is a wide difference in prices.
There are budget-friendly tiny homes that can cost less than $20,000, but only if you are willing to do some of the work yourself and salvage some materials. At the top end of the market, owners can spend $100,000 or more on their tiny houses.
If you don't want to spend quite that much money on a tiny home, you can still buy a made-to-order property for between $50,000 and $75,000. This compares very favorably to the price of the average new construction single-family home, which is around $284,000 in 2022.
Is Living in a Tiny Home Right for You?
Thanks to the savings on the cost of a tiny house, the majority of owners don't have a mortgage, and this compares to around 37% of all US households. 55% of tiny home owners also have more in savings than the average homeowner.
Your living expenses will also be reduced when you live in a tiny home. There will be fewer utility costs, less maintenance required, and reduced total expenses compared to living in an average family home.
While saving money on a home will attract a lot of people, there are downsides to tiny home living as well. You need to seriously ask yourself some questions before you decide a tiny house is right for you.
Where will your tiny home be placed? If you already have a plot of land ready for a tiny house, are you sure it is suitable? The local zoning rules might prohibit a tiny home from being constructed in the area.
Will you have access to utilities? And if you don't, are you going to be able to live off-grid?
Will you be able to cope with the winter months? The cold weather could make living in your tiny home more of a challenge, particularly if you are off the grid.
Will you be sharing the home with roommates? If you are, it could be more difficult than living in the traditional property. You will have less privacy living in such a small home, compared to what you might be used to.
Do you like to host parties? If you do, the guest list will have to be very selective when you're living in a tiny house.
The Bottom Line
If you aren't completely certain living in a tiny home is right for you, you can give it a test run by renting one for a few days. This should give you a better understanding of whether this type of property is a good fit or not.
While you might enjoy the cost savings, testing out this type of home will show if you can comfortably live in a smaller home.
Make sure you do this before making an offer and then having buyer's remorse.
Though you also need to remember that it might mean giving up possessions and reducing your furniture to a minimum to fit in your new home. But if these downsides aren't going to be too much of a problem, living in a tiny home could be a great choice if you are looking to downsize.
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