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Not All Buyers Want More Space—Tiny Homes are Steadily Rising

Market Data + Trends

Not All Buyers Want More Space—Tiny Homes are Steadily Rising

January 22, 2021
Interior of small home
Photo: ppa5

Larger suburban homes are not the only housing type seeing an influx of interest during the pandemic. Tiny dwellings are popping up for sale or rent in rural parts of Maine, Vermont, Wyoming, and even Alaska, reports Fox Business. According to a July study from Freddie Mac, listings that include either a tiny home or other types of guest apartments have increased 8.6% a year on average over the past 10 years. The growing interest could be due to the rising cost of living, especially for cities on the West Coast. Purchasing a tiny home could be both a cheaper way to buy, but also a way to generate more income since they can be rented out.

The pandemic is creating more uses. Some people are constructing them as a backyard office while working from home. Others are building tiny homes on undeveloped lots where one might expect to find a traditional-sized home, either for use as a primary residence or vacation home.

These homes go up fast; eight weeks is a typical length of time to build. Builders usually incorporate materials that align with the main house, as zoning rules tend to require. The price of construction varies by region, but in the Los Angeles area, for example, converting a garage to a so-called accessory dwelling unit starts at around $100,000.

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