What is the Average Cost of a Tiny House?
Tiny houses transformed the housing marketplace when they debuted. And they've created a new trend that remains popular. Many people invest in building or buying tiny houses because they're inexpensive. They're also attractive, and easier to buy than buying an existing full-sized home.
But what is the average cost of a tiny house? And what factors affect this number? Let us help you understand this unique and exciting discussion. We'll go over these numbers for you and help make it easier for you to decide. Our team researches all facts to ensure accuracy for your needs as a buyer and investor.
Smart Shopping With the Billry Store.
The Cost Of a Tiny House
We found many numbers when researching these costs. The lowest price found was $8,000, and the highest was $150,000. Both these numbers exist on the extremities. Few people will build a tiny house for $8,000, and anything over $150,000 might as well be a full-sized home. Thankfully, the average cost of a tiny house we found is around $45,000. This number varies based on many factors.
It also doesn't take into account foundation or property costs. You can't build a tiny house and hope for the best. You'll need land where you can put it and a foundation to hold it. Foundation costs vary based on the house. Most cost around $5,000-8,000 or $4-7 per square foot. Most tiny homes exist on trailers. That said, a level and stable parking area or foundation help keep it comfortable.
Land costs will vary based on many factors as well. You might find an empty lot in a big city for as little as $20-50K. In rural communities, prices may be lower. Often, tiny homeowners prefer rural areas anyway. These areas have less restrictive building codes. Some owners even join tiny home communities in these areas. However, these communities may need regular fees for residents.
In this way, they're like campgrounds. First, you pay for the right to park your tiny home there. Next, however, you'll have to set up electricity, plumbing, and other utilities. Tiny home communities may help you contact these companies. However, they won't call for you or pay for your hookups. These factors all increase the costs of tiny house living.
How This Compares To Other Homes?
Are you trying to save money on building a home? Then a tiny house might be a good choice for you. Their costs represent a fraction of what you'd pay for a regular home. For example, a small home of around 1,000 square feet costs between $100,000 to $200,000. Double that footage, and you're looking at $300-400K for a home.
The average cost of a tiny house is almost one-tenth that of these bigger homes.
That said, you do lose out on livable space in a tiny home. Some homeowners build tiny houses as small as 60 square feet. That extreme amount is quite rare, though. The average size of a tiny home is 225 square feet.
If you follow the national average of $100-200 per square foot, that's around $4,000-8,000 for a tiny home. So, why does the average linger around $45,000? Tiny houses need a skilled designer to execute. You don't have a lot of room to mess around with here. But your home still needs a place to sleep, a small kitchen, storage options, and bathroom areas.
Design
As a result, many tiny homes showcase a marvel of modern architecture and design. And unless you create that design yourself, you'll pay someone else. That expertise costs money and adds to your costs. For instance, your designer must create many comfort amenities. These include things like pull-out beds, under-stair storage, and much more. Without this help, your tiny house may feel very uncomfortable.
Living On The Go
However, many tiny houses provide mobile living opportunities. Many states consider tiny homes a type of motor home and require a trailer. This fact is true even if you live in the house and never move it.
That said, you could hook it up to a truck and take it camping with you. In this way, a tiny home is an affordable house and vacation home destination all in one.
In this way, building a tiny home may save you more money. However, many people prefer to go to the prefabricated route. Companies around the nation build tiny houses and sell them directly to buyers. Is this option cheaper or less expensive than building? As always, that depends on multiple factors. Examining them in depth will help make this financial situation easier to manage.
Prefabricated Home Options
You may also pay more or less for tiny prefabricated houses. These minimize building costs but don't allow as much personalization. And you'll pay more for someone to build them for you. The average price of prefab tiny homes sits from $30,000 to $60,000. At the higher end, you might as well buy a standard house.
However, these higher costs may be offset by DIY kits.
DIY kits use a prefabricated design and a bare shell that you complete yourself. You can add different elements to the shell, such as bathrooms and windows. Or you can build them yourself. This option works great for people with excellent carpentry skills. Often, these prefabricated DIY kits come with instructions and materials. In this way, you can walk through this process with minimal challenge.
You can also work with the builder to personalize your home in many ways. For instance, some manufacturers include things like extra insulation and various windows. You can also add elements like movable platforms that expand your home's size. All of these elements cost more money, though. So we looked at some of the most common manufacturers on the market to gauge their average prices.
For instance, the company “Shelter in a Day” has an average cost of around $5,000 but must be built yourself. It also requires a foundation. By contrast, Jamaica Cottage Shop provided homes for between $5,000 up to $100,000+. These included cabins and cottages that are a bit bigger than a traditional tiny house. And so far, most of the homes we've discussed need a foundation.
However, we've discussed trailer-based or tiny mobile houses a little. These cost a little more than some of the options on this list. Why is that the case? Let's take a look at tiny houses on wheels to get an idea of their average cost. You might be surprised to learn just how much one of these small (but cute) homes may cost you.
Trailer-Based Tiny Home Costs
The median cost for wheeled tiny houses is between $60-80K. Note that the median is not the same as the average. Average adds all of the expenses found and divides them to find an average. Median is the exact middle price on the list. As a result, it may vary heavily from an average. However, our research found that both the median and average costs were about the same.
These costs break down between building the house and the trailer. As a result, the prices of the home compare to that of a foundation-based tiny home. However, the trailer costs around $4,500-$9,000, depending on the size. That amount is comparable to foundation costs. That said, wheeled tiny house prices remain higher for a number of different reasons.
First, you'll need a secondary vehicle to haul the house, as needed. That may increase the price considerably. It would help if you also prepared the home for mobile living situations. This step requires fitting it with various extra elements. These include taillights, easy-to-connect sewage and electrical inputs, and more. Those steps need extra cash to buy and install and add to your tiny home price.
All told the average cost of a tiny house will be around $150 per square foot. This cost remains consistent with foundations and trailers. Some tiny homes, though, may cost up to $300-400 per square foot. Very tiny houses, in particular, usually cost more. Why is this the case? At that size, the economies of scale often require extensive work to manage.
Why Tiny, Tiny Houses Cost More?
Miniature houses cost more to build because they're harder to economize. In other words, the available space must be used as efficiently as possible. When you try to live in 60-square feet, every square inch matters. As a result, designers often utilize specialized plans that cost more to produce. And they need technical materials to build them correctly.
For example, miniature houses need to place beds above the rest of the house. Small staircases or ladders provide access to these areas. Beneath the bed, various careful storage shelves keep your items safe. And bathroom design must be very carefully handled. Things like plumbing require special pipes and tools that cost cash to utilize. Such tiny economies of space provide significant challenges.
As a result, a miniature house usually works best if you build it yourself or live alone. People in such houses need a total commitment to miniature living. Often, they create outdoor seating areas or work from home for long hours. Or they use the miniature house as a vacation destination. Some might even rent them out to others to make a little extra cash.
That extra work also requires more precision-based construction. You'll hire specialized professionals who understand building on this model. Thus, your price will naturally be much higher. Again, doing it DIY could cut down on some of these costs. However, we'll examine that idea in more depth below to see if it holds up to scrutiny.
Average Costs Broken Down By Size
You now understand a few different elements of tiny house pricing. However, you may still feel somewhat confused by this information. That's why we created this handy chart. It will give you a general idea of how much each tiny house costs by size. The broad ranges here provide many unique possibilities. They include:
As you can see, the costs go up as you increase size. Interestingly, the prices go up mathematically. For example, a 200-square-foot home costs twice as much as a 100-square foot house. Of course, the end result likely varies. After all, many elements go into pricing a tiny home. Let's examine a few to help make this process easier to understand. Doing so gives you the kind of insight that you need to make a great tiny house.
Factors That Affect Pricing
You've likely noticed the varying average prices discussed throughout this article. That's because many factors affect the overall pricing of your home. The following elements describe just a few that impact your cost. Anticipate other factors also playing into these varying prices.
Material Costs
Expect to pay up $14-54K on your materials alone. You'll also have to get a building permit, costing around $2,000 or so. This price may go up or down, depending on the home you build. Some smaller houses may cost far less for their materials, of course.
Who Builds It
Professional home construction may add another $5-20K to your construction project. Going DIY cuts down on these costs but adds to your time cost. For example, you'll need to build the home yourself or with friends. In addition, you'll likely take much more to do it than professionals. This may cut into your life enjoyment.
Number of Bedrooms
Many tiny houses provide surprisingly comfortable sleeping arrangements. However, each new bedroom must have 70 square feet to be a bedroom legally. Clever design facets may help you here. However, each extra bed adds more space needs and adds to your overall price.
Stories
A single-story tiny home costs much less than others. For example, they may have cost as little as $20,000 at the lowest. By contrast, two-story tiny houses cost minimally $60,000, and three-stories may cost $80,000. Extra stories do allow you to maximize your living space area, however.
Design Type
Do you build a tiny home that looks like a small home? Or do you refabricate a shipping container? Or would you instead use a yurt for your tiny house? Each of these house types has varying prices. Shipping containers usually cost the least, with yurts the middle option for cost.
Finding Financing For Tiny Houses
Many tiny house manufacturers provide inexpensive financing options.
Mortgage
They build the home for you and collect regular payments. These work the same as mortgage payments. Most do need a credit or background check to gauge your score. When you have excellent credit, this may help you. Many people spend far less on tiny house mortgages than they would other home payments.
Personal Loans
You may also get personal loans to pay for a tiny home. This helps if you don't work with a manufacturer or build the home yourself. Know that your interest rates will likely be higher on a personal loan. You may also have to lay collateral down for the loan. Most lenders will accept the tiny house as collateral. However, that varies depending on each lending option you choose.
Grants
You might also find grants that may help you. For example, some states and cities provide tiny house grants. These help pay for building these homes. Grants don't have to be repaid but may not cover the entire cost of building a home. Yet, every bit of cash helps out! And in some cases, even as little as $10,000 may pay for much of a tiny house's construction costs.
When seeking out tiny house loans, don't forget to use our app to guide your journey. It includes many lenders sorted based on your needs. Create unique search terms, rate lenders based on your needs, and choose someone to help you. Just download our app, create a profile, and start searching. Doing so helps provide many benefits for your tiny house funding.
For example, you can focus on companies that suit you. Find poor credit lenders who will help people in tough financial shape. Or identify tiny-home lenders who understand your needs. Many different financial firms exist across the nation and world. When you work with us, you improve your chances of finding a great option. And you also enhance your chances of buying a great tiny home.
Get Started On Your New Life Journey
After you find funding, your tiny house adventure is just beginning. First, you need to pick a house and build it. Then, it would be best if you placed it somewhere you can live. You're likely to find this change period quite fascinating. People often discover tiny house living is more of a challenge than expected.
That said, the adjustment often provides more benefits than expected. The joys of small mortgage payments and compact living are numerous. Besides, taking care of a tiny house will take up less of your precious time than a bigger home. In this way, you can get more joy out of life.