Tiny homes are actually more expensive per square foot than traditional homes. However, they’re usually less expensive overall.
The average tiny house costs about $30,000 to $50,000 to build. However, it can be as cheap as $10,000 or as costly as $150,000, depending on how many luxury amenities and state-of-the-art upgrades you want to add. Pre-constructed tiny homes and those on wheels tend to be on the cheaper end. However, you can also build one out of salvaged materials if you want to save money.
In contrast, the average single-family home in the US is just under $500,000. However, the average cost per square foot of a tiny home in the US is around $300, compared to about $150 for traditional houses. Tiny houses also tend to be cheaper to maintain because there is less interior space, and you can construct them on smaller plots of land. But that can also depend on how well it’s constructed.
Financing is another consideration when totaling the costs related to owning a tiny home. Tiny houses can be more complicated to finance. Conventional mortgages may not be an option, meaning you may have to pay out of pocket or look into getting a personal or construction loan. Many people turn to tiny homes as a way to avoid paying a mortgage. That means the upfront costs may be higher than making a 20% down payment. But you’ll save money in interest over the life of the loan.
Finally, the cost of the land is another consideration. If you plan on building a tiny home in a remote area where land is cheap, it will be more affordable than constructing it in a popular area with high property values.
So, while tiny homes do offer cost savings compared to traditional houses, there are many financial variables can impact the costs. Plus, the lack of appreciation means that you your investment may begin to lose money as soon as you complete the purchase.
