flexiblefullpage
Currently Reading

Tiny Homes May Not Be as Cost-Effective as You Think

Advertisement
billboard
Tiny Homes

Tiny Homes May Not Be as Cost-Effective as You Think


August 19, 2021
tiny home
Photo: Mat Hayward | stock.adobe.com

Accessory dwelling units spiked in popularity during the height of the pandemic for their flexibility and affordability features, but reports show these tiny homes can be quite costly. Defined as homes with less than 600 square feet, tiny homes are roughly eight times smaller than the average single-family home. They even cost 87% less than a typical home, averaging $52,000, but the cost per square foot is where it gets tricky. Buyers typically pay 62% more per square foot for tiny homes, reports CNBC. Utility hookups and local zoning laws can add more to the price tag too.

“If your house is located off-grid – meaning there’s no access to utility sources – you may need to collect rainwater or dig a well, use solar panels and install a septic system. All of these will add to the cost of a tiny home build,” added Kupriyanov.

So where do you get the biggest bang for your buck on a tiny home? They’re cheapest in North Dakota ($28,000) overall, but if you’re going by square foot, homes in Arkansas are cheapest. Hawaii, which is one of the most expensive housing markets in the U.S., also has the most expensive tiny real estate, with an average price tag over $149,000 or $490 per square foot.

When it comes to tiny home affordability, North Dakota, New Hampshire and New Jersey rank at the top. Tiny homes there cost less than half the average annual household income. Tiny homes are least affordable in Hawaii, Montana and New Mexico.

Potential buyers of tiny homes also need to consider the cost of insuring their tiny investments. And that differs by region as well.

Read More
 

Advertisement
leaderboard2

Related Stories

Affordability

As Housing Costs Rise, Millennial Buyers Turn to ADUs

Accessory dwelling units offer a compact, affordable, and energy-efficient alternative to traditional single-family housing 

Education + Training

Stockton High School Students Build Tiny Homes to Give Back to Their Community

High school students in Stockton, Calif., are constructing tiny homes for local families in need

Tiny Homes

Seattle Builders Are Constructing Tiny Homes for the Formerly Homeless

A Seattle-based home building initiative is joining forces with volunteers from a local nonprofit to build energy-efficient tiny houses for the homeless

Advertisement
boombox2

Top Articles

Advertisement
boombox1
Advertisement
native1
halfpage2

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

Advertisement
native2
Advertisement
halfpage1

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.