Although you may have heard of tiny homes, you may not be aware of the financial benefits of owning one. Having a tiny house is more of a lifestyle than a trend.
So, if want to know how having a tiny house could be your path to financial freedom and personal happiness—read on.
Tiny houses by the numbers
According to the Tiny House Society, homes that qualify as tiny are usually between 100-400 square feet in size. Since 2014, they’ve more than doubled in popularity in the U.S.
On average, tiny houses sell for less than $50,000, but if you’re willing to build one yourself, you can spend as little as $20,000 on materials and labor. They offer substantial financial benefits, too. Many tiny house owners:
- Have less credit card debt than the average American
- Have more money in savings than the average homeowner
What are the downsides of living in a tiny home?
One of the most obvious drawbacks to living in a tiny home is not having enough space. Since a tiny home is so compact, the way that space is used within it must be both efficient and well-planned. As you may imagine, this means you have to be comfortable living in a simple, “less is more” kind of way. If not, a tiny house isn’t the right choice for you.
In addition, if you can’t find a free place to park your home, you’ll need to purchase or lease land. And just because you live in a tiny home doesn’t mean you won’t have to pay for utilities, like electric, gas and cable. These things can really start to add up. Depending on where you live, owning a tiny home may even become cost-prohibitive, especially in and around large metropolitan areas. Zoning laws and building permits may land your tiny home in a legal gray area — especially if it’s a tiny house on wheels. This can create a level of uncertainty most homeowners don’t want to deal with.
Despite these potential drawbacks, tiny homes remain more in demand than ever. You can be assured you won’t have to go it alone. There are numerous online resources to help you find tiny houses for sale, decide whether to invest in them, discover how to build them, and even learn how to simply downsize.
And if you determine a tiny house is not for you, you can use this calculator to figure out how much of a “regular-size” house you can actually afford.