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People choose to go tiny for many different reasons. Some people are attracted to the uniqueness and customization of each home. Others prioritize sustainability, eco-friendly housing and a commitment to living responsibly. We also come across many clients who are intrigued by the notion of simple living – less stuff generally equates to less stress and more time for the things that matter most. Our Build-It-Yourself’ers report being motivated by the gratification that comes with learning to build and literally (as well as metaphorically) creating a home for themselves. There’s much less to maintain, and if anything goes wrong they can likely fix it because they built it! Ultimately, the tiny house appeal is usually a combination of these factors, and almost always includes one influential benefit: affordability.
No matter what state you live in, it’s safe to say that purchasing a tiny house over a traditional house will save you a great deal of money. The exact amount you will save varies based on a variety of factors, including the average closing costs and real estate market in your area.
analysis of the west coast & new york
Tiny houses tend to be especially cost effective here on the West coast in densely populated areas of California, Washington and Oregon where we are based.
The graphs above come from Unison Home Affordability Report for 2018. According to their findings, you need an annual salary of…
$108,000 in Portland, OR
$172,000 in Seattle, WA
$187,000 in Los Angeles, CA
$350,000 in San Francisco, CA
$418,000 in New York, NY
… in order to afford the 10% downpayment needed to purchase a home.
If you make the median income in these areas, it will take you more than a decade to save just for that 10% downpayment. In the 2017 report, the median incomes were…
Portland, OR. At this rate, it would take 11 years to save for a home.
$75,822 in Seattle, WA. At this rate, it would take 12 years to save for a home.
$62,312 in Los Angeles, CA. At this rate, it would take 19 years to save for a home.
$92,501 in San Francisco, CA. At this rate, it would take over 20 years to save for a home.
$74,397 in New York, NY. At this rate, it would take 12 years to save for a home.
The Tiny house alternative
Long story short, the West coast and New York have especially problematic areas. But never fear! Our tiny houses start at just $45,000, which is an incredibly affordable alternative especially when you consider that each one is completely custom and built from all new construction.
Below are some kind words from HomeAdvisor about what they had to say on the matter.
“Custom construction allows you to create a home that meets your exact aesthetic and functionality needs. The unlimited options associated with custom homes make them costly both in terms of money and time. Additionally, custom builds will require the services of a residential architect. Hiring design professionals can range from 5 to 15 percent of your construction costs.
Estimating the cost of a custom home is difficult because of the wide range of options. Generally, custom homes cost between $100 and $400 per square foot. Location and materials will play a major role in the price of your custom home. Tiny homes are a popular alternative to larger custom homes. These downsized dwellings offer the personalization of custom homes without the price tag.”
Additionally, a smaller footprint means less money spent on utilities, household maintenance, furniture and “stuff,” sewer, electrical, property taxes (RV-style) and even insurance premiums. So what are we waiting for?!
