Homeownership has often been the goal for many Americans, but as traditional home costs become unobtainable for many due to rising prices, people have started turning to smaller dwelling spaces to keep prices palatable. Enter, the tiny home. This micro-dwelling has seen an almost meteoric rise in popularity over the last decade, thanks to lower prices and a more sustainable mindset.
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On average, a tiny home costs about $50,000. Comparing that against the average U.S. home sale price, which was nearly $298,000 in 2021, it’s astounding how much a tiny house can significantly save you money. You’ll find a broad range of price tags when researching common tiny house costs. The cost you’ll end up paying for tiny homes depends on the size, quality and details of the house you choose.
A basic cabin kit can cost between $6,000 to $8,000, while a custom tiny house with custom features and build-ins can easily cost as much as $100,000 or more.
That said, prepare to pare your lifestyle down and minimize where you can. Most tiny homes don’t exceed 400 square feet, and you’ll need to adjust the amount of stuff you have, even with the best organizing tips and tricks.
The biggest factor that affects tiny house pricing is your decision to buy pre-fabricated (or premade from a kit) or hire a professional to custom-build something for you. Custom homes with add-ons will cost closer to that $100,000 range.
So you’ve decided to test the waters and downsize your life. A tiny home looks like the perfect, affordable option. But as you work the cost of the home into your budget, be sure to include lesser-known things like permits, land and other extras as well.
Especially if you’re taking this on as a DIY project, make sure that you’ve secured all the necessary permits. Contact your local city hall if you’re unsure. Planning to have professional help building your tiny house? You may not need to concern yourself with this aspect, since professionals and companies typically handle permits on their own (despite you still paying for it). Permitting can cost anywhere from a couple hundred to a couple of thousand dollars, depending on location and the exact rules of your locale.
The cost of land can vary broadly depending on the region in which you live in the U.S. So it’s a top consideration you should have when asking yourself; how much does a tiny house cost?
In Alabama, for instance, the cost of one acre of land is around $2,000, while the same can’t be had in New Jersey or New York without shelling out $13,000. Note this if your tiny house will be on a permanent foundation; not only will you have to purchase land, but expect to pay property taxes as well.
Square footage is only one aspect to the overall cost of a tiny home, but on average, you’ll pay around $160 per square foot. Remember that this amount is just for the structure alone, not land or any extras. The table below shows the approximate tiny house cost for homes with different square footage.
Today, tiny homes can boast lots of helpful amenities and aesthetic build-ins. You can find tiny homes with reclaimed barn wood walls or upgraded appliances. Granite countertops and hand-scraped wood flooring are also popular additions in tiny houses.
Of course, you’ll pay more for these things, but many consider it an acceptable trade-off for a home that’s far less expensive than a traditional home. Our advice is to go into it knowing what you want out of your tiny home, and including any desired amenities in the tiny house cost you’re willing to pay.
Before you determine how much it costs to build a tiny house, you’ve got to factor in the foundation. Building a tiny house on foundation costs between $53,000 and $57,000. A tiny house foundation costs between $5.50 and $8 per square foot, or $6,000 to $9,000.
Of course, if you’re planning on building your tiny house on a foundation, you’ll also have to pay for land (discussed above), so be sure to factor this in as well. On the bright side, you won’t need much land since your home is on the small side. If you need a surveyor, expect to pay around $550 for those services.
The average cost for a tiny home on wheels is typically $60,000 to $80,000. And if it’s a trailer you’re seeking, know that the cost of a trailer is similar to the cost of laying the foundation (anywhere from $5,000 to $9,500). If you ever plan to move your tiny home, note that you’ll need a vehicle capable of towing it.
Types of Tiny Houses
As you begin your journey to building a tiny house, keep in mind that the type of home you choose will depend on your needs and how much room you have on your land. From tiny homes on wheels to park models to tiny homes with foundations, it’s essential to take time to consider all of your options so that you can select the best tiny home for your lifestyle.
Tiny House on Wheels – THOW
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Tiny houses on wheels are a great solution for anyone looking to downsize while still maintaining their freedom of living. They can be moved to whatever location you desire, so whether you have your own property you’d like to park on and want to pick up to park right next to your favorite lake or river, a tiny house on wheels is great for adventurers. They’re also great for those who want the luxury of having their own home but don’t require much space.
Park Model – PMRV
When thinking about a tiny house, you envision a compact dwelling with everything you need, right? That’s what park model RVs offer. These tiny homes, which are built to ANSI code (RV), typically include one bedroom, one bathroom and sometimes even a loft space. You may not think that 400-square-feet of interior space would be enough to feel like home, but with these park mobile RVs, you get a good amount of space for your money.
Tiny House on Foundation – THOW
A tiny home on a foundation provides a few benefits for people who want to build a home but don’t necessarily need as much room as an average-sized home provides. They also can be fully customizable and personalized to suit you and your family’s lifestyle while also taking up less space than other options. However, building one does have some additional factors you’ll want to consider, like upfront costs for the property it’s built on, building permits and utility hookups.
Benefits of Owning a Tiny House
Owning a tiny house is becoming increasingly popular, and for many people, the benefits of a tiny house are too good to pass up. From affordability to mobility to sustainability, tiny homes are a great option for people who have dreamed of living in a more minimalist home.
Affordability
Affordability is a huge benefit of tiny houses. Not only are they less expensive to build and maintain, but they also save money on housing costs. Owning a tiny house allows you to live more simply and in an inexpensive way that can be potentially used for investment or future retirement plans.
Mobility
Not only are tiny homes great solutions when it comes to affordable home ownership, but they can be placed on wheels, making them highly mobile. This means that you can take your house on an adventure through parts of the country or move around with it if necessary. Simply attach a tiny home to a truck, and go wherever the open road takes you.
Sustainability
If you’re looking for a home that values sustainability, then a tiny house is for you. Tiny houses are designed to be more eco-friendly with very low environmental impacts in comparison to traditional homes. They use less energy and water, require less land, create less waste and typically have a smaller carbon footprint.
To arrive at the average costs in this article, a number of providers and cost databases were surveyed on national and local levels. All averaged figures were correct at the time of publication and may be subject to change.
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