Hidden Costs of Tiny Homes
Owning a tiny home has gained popularity in the U.S. due to its noticeable benefits when it comes to cutting down on costly bills and expenses associated with larger homes. Do the benefits outweigh the costs? Let’s take a closer look at the financial pros and cons of owning a tiny home.
Minimalism is a popular trend that has influenced American culture, and even the housing market. Tiny homes offer residents with a significantly downsized living quarter, thereby simplifying and reducing materials owned and used. There are rules to labeling a house on the market as a tiny home, and a regulation will always include the size of the home (normally they cannot be over 400 square feet). Before considering living in a tiny home, it is important to ask yourself a few questions. Are you purchasing a tiny home for financial or personal reasons? Who, or what will be living with you in this limited space? What community will I be surrounded by, and do others share a similar lifestyle?
There are certain regions in the U.S. where tiny homes have rapidly gained popularity, particularly in U.S. states in the Northwest and Southwest. States such as California and Oregon have seen a rising increase in demand for tiny homes, and even provide sellers and buyers with an opportunity to live in tiny home communities! However, not all states offer similar options, and some states do not permit these homes. Overall, it is critical to consider a few factors to ensure you are not making any costly mistakes when building or purchasing a tiny home in your area.
Is it cheaper to build or buy a tiny house?
Normally, you will find that it is much cheaper to build your own dream (tiny) home rather than buy one on the market. Buyers will quickly discover that tiny homes cost much more per square foot, at times double the price, when compared to regular family homes.
The cost to build or buy a tiny home will depend on the amenities and luxuries included in the home. Aside from the size of the house, take into consideration the quality of the materials used, the cost of land if applicable, whether the house is on wheels, building permits, utilities, and any add-ons or features included in the home. In addition to the direct costs of these homes, it is important to consider any “buried” costs in order to draw a fair comparison between building and buying. For example, look into costs related to zoning laws, storage facilities, home insurance, and resale value (which can vary from state to state).
Lastly, take into consideration the overall cost of the number of people who will live in the home. Tiny homes are not meant to be for larger households as they are impractical when it comes to space, storage, and even physical or mental health. Be realistic when factoring in the personal and financial pros and cons to these homes which will depend heavily on the number of people and age range.