While many people are excited to join the tiny house community and become a part of the minimalistic lifestyle, others consider using this exhilaration as an opportunity for investment. In fact, tiny homes are great investments and can be used as vacation rentals or for long-term leases. However, the return depends mostly on how well you judge what people seek from this tiny home experience. With shows like Tiny Luxury and Tiny House Big Living, the trend is definitely on the upswing. At the same time, while the majority of tiny homeowners are over 50 years, reports claim, a whopping 63% of millennials are inclined toward purchasing a tiny home. With growing interest in tiny homes and supportive government regulations, the time is ripe for tiny home investments.
The income-generating ADUs
Invest in an Accessory Dwelling Unit (ADU) for additional income. You can rent out the space as an apartment or as an office space to a remote employee. If you have adequate space in your backyard, then this is a great option to set up the ADU in your property before renting out the space. This saves you from additional investments in buying land or property to set up ADU. However, you must abide by the zoning laws and ensure the ADU is permissible in the locale. ADUs are now hailed as an alternative to relieve the housing crunch in many US states.
Customize to turn a single-family property into a multifamily household
Why send your in-laws and parents to retirement housing? In fact, now you can have your in-laws and adult children living together on the same property. You can now turn a single-family home into a multifamily household by investing in a tiny home. Many tiny home builders offer customized tiny log cabins for sale within a budget. Depending on the local zoning codes, you can add a tiny home structure in your backyard as a small apartment for your adult children or an in-law suite. The demand for such a setup is on the rise. According to the Pew Research Center, there are 4 times as many multigenerational households as in the 1970s – coincidentally, it’s same time the tiny home movement gained momentum.
Make quick money – Tiny home as a vacation rental
Did you know, as per a survey by HomeAdvisor, only 30% of respondents were willing to buy a tiny home, but many more wanted to live in one for a short time? If you are prepared to enter the market and turn the tiny house into a short-term rental, then you will have a good income stream. Moreover, if your home is unique-looking or in a desirable location, it’s a big bonus to generate more income. Check out the Airbnb website, and you will be happy to find an entire category allocated to tiny homes. The nightly tiny home rentals run less than 100 dollars, which is far less than a hotel stay or vacation home – yet you can increase the price by providing good and clear pictures, keeping the space clean, and researching what other successful tiny home hosts have done to attract renters.
Tiny Home as an Investment
| PROs | CONs |
| Highly affordable investment | Legal and regulatory restrictions |
| Easy cleaning and repairing | Fleeting trend |
| People are eager to rent or buy the space | Hands-on management |
| Low taxes – High ROI | Mortgage complications |
| Not a huge investment risk | Limited space |
A tiny home is a great investment only if you are smart about your choices. However, it’s a good investment when you are looking for an affordable property without any mortgage. It’s easier to rent out a tiny home as the demand for such properties has escalated soon after the pandemic. Keep the cons in mind and plan your strategy to ensure the investment is successful and reaps benefits. If you are planning to invest in a tiny home, then you need to compare and choose between different models and prices – and then make an informed decision. TinyHouseMe showcases high-quality tiny home models and connects you with established builders across US and Canada. Save time and connect instantly to the builder of your choice. Going via TinyHouseMe gives you the privilege to pick and choose the right builder, ideally suited for your needs.
Final words
While some say tiny homes are a fad, the trend is going strong. The tiny home market will grow by $3.57 billion between 2022 to 2026, as per reports of the Global Tiny Homes Market. Make the investment now by buying high-quality tiny cabins for sale. Instead of wasting your time searching and googling, check out premium models under one platform. TinyHouseMe is the one-stop destination and showcases tiny home models manufactured by established builders. Connect with your preferred builder via TinyHouseMe. We assure you competitive pricing and priority service by placing you on the front line for the builders.
