For many, buying a traditional single-family home is a distant dream. The traditional building is unobtainable due to the rising costs, which has made people turn towards tiny living to keep the prices palatable. The tiny home market is likely to see a growth of USD 3.57 billion from 2021 to 2026, with a CAGR of 4.45%, as per the market report by Technavio. While the cost of a traditional building is nothing less than $358,800, the tiny home model is much more affordable and a sustainable choice. You can build your own tiny home from $6,000 to $8,000 with all the necessary amenities for a comfortable life.
If you have decided to test the waters to minimalize your life, then the tiny house is a perfect affordable solution. Although the cost of the home might come under your budget, the lesser-known factors like permits, land and other amenities also need to get considered.
Building permits
While looking for tiny house builders near me, opt for customized ones and ensure all the permits are in place. If unsure, the local city hall might help you customize the tiny house for a professional build, ensuring the permits are easily attained. Most companies build tiny homes adhering to American Building Standards and keeping local permits in mind. However, permits might incur costs depending on the locale and the exact rules of the place.
Land costs
The land cost varies drastically depending on where you stay in the US. Consider this fact before asking about the exact cost of a tiny house. For example, the cost of an acre of land in New York and New Jersey is around $13,000 (as per Forbes), while rural land in Texas costs around $3,249/acre(as per DiscountLots). This is important because if you have a tiny house built on a foundation, you must purchase the land and pay property taxes for the same.
Amenities
Although tiny homes are conceptualized as micro-dwellings, in reality, they are large, spacious, and come with all amenities and comforts. In addition, the homes are fully upgraded to provide excellent insulation and maximum security. Of course, you need to pay more for a comfortable space, but it’s acceptable as the trade-off costs you far less than an expensive traditional space. Our advice is to discuss in detail with the builders to get a tiny custom-made home with all the desired amenities and security systems you are willing to pay for.
Invest in a tiny house on wheels or a foundation
Building a tiny home on a foundation can cost between $5 and $7 per square foot. In addition, there might be additional expenses related to project pricing and land costs. However, looking at the brighter side, you won’t have to pay a hefty amount for a traditional house while enjoying similar benefits inside an affordable and sustainable tiny home.
Are you disinterested in putting down roots? Then, get a tiny home on wheels. Such tiny spaces mostly have a concrete foundation and must adhere to the zoning guidelines. However, Texas has ‘unrestricted zoning ordinances’ and has almost no or very loose zoning guidelines. Again, New York city regards tiny homes as RV (recreational vehicles) and has relaxed zoning restrictions, adopting more lax in allowing tiny house construction.
Where will you get the financing?
Leading a low-cost sustainable lifestyle draws people towards a tiny house. However, you need money to get started with the project. Unfortunately, tiny homes cannot offer mortgages, unlike traditional buildings. Mortgage companies require you to have minimal home loan amounts, or the house needs to be built on a permanent foundation. Due to these reasons, looking for alternative financing options is essential.
RV Loans – The tiny home on wheels qualifies for the RV loans. This loan terms up to 15 years and offers extremely low-interest rates. The only catch is that you need to build the house and customize the structure following the Recreational Vehicle Industry Association rules and regulations.
Personal Loans – These loans are an attractive financial solution as they don’t require any collateral but come with a shorter term. The loan term is usually between 2-7 years, and the interest rates are much higher than other financing solutions.
Get financed by the manufacturer or ask for a financial source – Some tiny home manufacturers offer in-house financing or direct you to other sources that customers can use. You need to talk to the manufacturers before concluding any financial decision.
Final Thoughts
Housing costs will not go down anytime soon. If you want a more affordable alternative to conventional housing and have no intention to rent, then a tiny house can be a great choice.
