Tiny homes have grown in popularity recently. They are defined as those that have under 400 square feet of living space, which is smaller than most modest-sized urban apartments. It compares to the average American house size of just over 2,500 square feet. Many of these tiny homes are mobile and have wheels, so they can be towed from place to place.
One reason people buy these homes is the expense. Realtor.com recently pointed out that one with relatively good features costs between $80,000 and $100,000, well below the median price for a home in America.
Porch.com recently did its own research on tiny homes, and some of their conclusions were slightly different from widely used numbers. Their research showed that the average size of a tiny home at 225 square feet. The average cost was pegged at $52,000 or “87% cheaper than a regular home.” The conclusions were summarized in a report titled “Affordable Alternative or Passing Fad? A Study of the ‘Tiny Home’ Market in 2021.”
The cost of a tiny home is less attractive when looked at on a square-foot basis. By this yardstick, they are 62% more expensive than a full-sized house.
Among the major findings of the study are the ages of buyers of tiny homes. The researchers found:
Statistically, Millennials are especially drawn to tiny homes due to their price, flexibility of location for remote work, and eco-friendliness. And for Baby Boomers, a tiny house is an opportunity to exchange a big empty nest of a family home for something more affordable with significantly less upkeep.
The state with the lowest price for tiny homes is North Dakota, at $28,000. It is followed by Arkansas ($31,700), Kansas ($33,500), Mississippi ($34,500), New Hampshire ($35,200), Kentucky ($35,300), Missouri ($35,700) and West Virginia ($36,200).
One trend that stands out among these states is the very low median household incomes compared to the nationwide number.
Click here to see which county has the most expensive homes in America.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
