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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.
nationwide analysis
On the last episode we summarized some areas where the housing crisis is exceptionally severe. For a more general calculation of affordability, we can examine some statistics on the national averages.
We’ll begin with some figures from Zillow’s reports, as they specialize in the U.S. housing market and therefore have the ability to collect a plethora of real and reliable data. According to their 2018 that the current median home value in the United States is $210,200. It also states that home values have gone up 7.6% over the past year and predicts that next year they will rise and additional 3.5%. The median list price per square foot in the United States is $141. Additionally, the median price of homes currently listed in the United States is $261,500 while the median price of homes that sold is $232,300. The median rent price is not much more affordable, at $1,600.
HomeAdvisor is another great resource for dependable data. Their website states that custom homes can start at $350,000 – $1.5 million+. We fully believe in the value of prioritizing customization over mass appeal or resale value; however, if you’re looking to buy a traditional custom home, it will cost you. Tiny houses can feature the same special, unique features without the hefty price tag, but we’ll get back to that later.
Tiny living doesn’t make sense for absolutely everyone, and we totally understand and embrace that. At the same time, the average square footage is excessive for most of us and most of the space ends up going unused. As you can see below, only 22% of new construction in 2016 was less than 1,800 square feet. It’s only continued to increase since that time, and unfortunately this “bigger is better” American mindset has many people trapped struggling to pay rent or mortgages simply because they’ve been conditioned to believe that “success” is defined by belongings. Our place is to introduce people to another potential lifestyle and template for success and happiness.
The Tiny house alternative
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. Think of it this way:
Custom NEW Home: $350,000+
Standard Home: $232,300
RV: $122,715
Mobile Homes: (Most Basic) $30,000 – $70,00 | vs. | (Customized Models) $100,000
Tiny House: Averages $70,000
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?!