Are Tiny Homes the Ultimate Solution to the Housing Crisis?

As per, since 1950, the average size of an American home has doubled from 950 square feet to 2,000 square feet, but the main problem is that although housing prices are rising, the wages remain the same. With rampant consumerism threatening the planet, people are questioning whether bigger is better. In recent decades tiny house on foundation has become an innovative and affordable housing solution for aspiring homeowners. This trend is no longer confined to millennials and minimalists but now stands out as a promising solution for the housing crisis. While it’s still unclear how many tiny homes are there in US, the demand for tiny houses on foundations is rising. As per Technavio, PR News Wire, the tiny home market is expected to grow by 3.33 billion dollars over the next four years, and more than half of this growth will be from North America. As per Zack Giffin, the co-host of Tiny Home Nation and Operation Tiny Home and the Vice President of Tiny House Industry Association, “either we solve the housing crisis by cutting down the trees or build small spaces with minimal materials that are energy efficient and requires fewer resources for heating and cooling.”


Tiny homes – The ideal choice for affordable housing

The cost of a single-family house varies widely from one state to another, but the US average is around $327,514, as per Zillow.Com. Again, as per Harvard University’s 2020 State of the Nation’s Housing Report, 30% of US households, around 37.1 million, are cost over-burdened and fall under the low-income group. Apart from environmental advantages, a tiny house on a foundation cost much lesser and can shelter homeless people in the US. 

In Detroit, Michigan, the Cass Community Social Services is building 25 tiny houses to serve as low-income housing. Residents can rent the houses, and after seven years, they are eligible to own the property. MilwaukeeDenver, Wisconsin, Olympia, and Colorado are a few other tiny home communities offering shelter to homeless people. 

As per Business Insider, between 2018 and 2021, at least 63,456 tiny houses were built in California backyards. There is a mini-boom in ADUs and even the legislation promotes accessory dwelling units. As per (Tiny Home Industry Association), the tiny house on a foundation, or ADUs have filled backyards from San Diego to San Jose after the state lawmakers started breaking down the barriers and welcoming tiny houses. As per a state data analysis by Terner Center for Housing Innovation, California has approved permits for 22,663 ADUs in 2021, which is why the popularity has grown over the last few years. The state’s promotion of ADUs is helping in affordability but has yet to put a dent in the shortage of homes. California’s ADU revolution might still be in the nascent phase, but it has encouraged other states to implement similar laws. States like Maine, Oregon, and Nebraska and cities like Miami have already enacted similar laws, while New York and Washington are considering ADU legislation. 

Dire shortage

Housing affordability has started waning at a faster rate. The average American household can’t afford to buy a traditional house and is struggling to pay the rising rent. As per Marketplace, a typical renter spends more than 30% of their income on housing and is rent burdened, which makes the renter poorer and reduces his financial strength. To solve this problem, lawmakers are now relaxing rules on tiny houses on foundations and allowing individual owners to build additional units on their existing lots. Although it’s still not applicable in every state in the US, it’s a win-win situation. Homeowners are adding value to their property. At the same time, many generate extra income by renting these houses on foundation, which again addresses the state’s conundrum of incentivizing buildings in populated zones where the structures are few and much more expensive. 

Housing and health 

As per a 2019 study, around 64,000 homeless people living on the streets are more likely to report health conditions like substance misuse, trauma, and mental health issues than individuals with temporary shelters. Therefore, the National Coalition for Homelessness executive director, Donald Whitehead Jr., thinks that tiny houses are a great choice for emergencies to protect people from violence and elements. 


Are you planning to downsize?

If you are planning to downsize, then here are a few things you must consider:

Firstly, most states in the USA, except for some parts of California and Maine, recognize tiny houses on wheels as recreational vehicles rather than permanent residences, which means financing can be difficult for such structures. Traditional home loans are unavailable for tiny houses on foundation or wheels. Even RV and personal loans come with higher interest rates.

Secondly, be aware of the complicated building and zoning rules which can vary from one state to another. To address these challenges, you can look for tiny home builders at TinyHouseMe. We connect you with multiple home builders offering tiny houses on foundation. We also help plan and finance your tiny home dream project. To book an appointment with your matched builder, join our platform now


A Few Tips for Sorting Out the Tiny House Puzzle!

Tiny houses are downsized living spaces to simplify your lifestyle. Jay Shafer was the very first American to place a tiny house on wheels. It was way back in the year 2000, which led to the first-ever Small House Society in 2002. 


Nevertheless, traditional housing prices started increasing, especially during the first half of 2021. As a result, people switched to tiny houses. A recent survey by IPX1031, a subsidiary of Fidelity National Financial, found that almost 2,006 Americans showed interest in tiny houses.

As per the survey, about 86% of homeowners said they would prefer buying tiny houses. Additionally, 84% said they would choose atiny house on a foundationas their post-retirement living option. The proliferation of massive tiny house popularity moved beyond just an option of downsizing the lifestyle. 

According to a report by Wall Street Journal, Americans targeted tiny houses as an escape during COVID-19. However, if you are new to joining the tiny house movement, you should know certain tips like floorplan, features, cost, and more.

Cost factor

While prefabricated houses cost a few thousand dollars, luxury or custom-made houses cost more. When buying a tiny house, the price of it will depend on the build quality.

Consider buying custom structures if you want a quality structure with a thoughtful design. Although the tiny house is initially costly, the good news is that many manufacturers in America offer in-house financing or direct you toward other finance sources.

ADUs – The tiny home trend on the rise

There are a variety of tiny home structures in the market. You will find tiny homes on wheels that build on a foundation, cabin kits, ADU units, and plentiful options in the market. However, ADU kits have risen in popularity for innumerable reasons. A customized ADU kit includes a bathroom, kitchen, and living space. Getting a legal permit is also essential, and that’s where a trusted tiny home builder enters the picture. The ADUs come in different varieties, like detached ADUs, junior ADUs, and attached ADUs.

In ten years (2009-2019), the ADUs’ first-time listings growth averaged 8.6%. According to one of the studies made by Freddie Mac, states like California, Texas, Georgia, and Florida have the maximum ADUs.

Tiny house floor plan

Tiny house on foundations come in different sizes. Although most dwellings are 400 square feet long, if you have an ADU, the size can go up to 1200 square feet. Apart from that, the floor plan also plays a significant role. As tiny houses already have limited space, you have to plan to maximize the space for hassle-free living.


You can enjoy your stay in atiny home on a foundation with interesting features.Tiny houses come with smart storage options and useful custom features. For example, most tiny houses have storage solutions, such as drawers below the small staircase. In addition, the tiny homes are now upgraded with good insulation systems and electrical and plumbing facilities. 

Loft beds are yet another smart solution for a tiny house since they don’t take up too much space. If you want to buy a tiny house to make it your workstation, find out that it has adequate working space.

Choosing a reputed builder and designer

If you need a tiny house in the future, you must rely on an experienced builder and designer. However, as a novice, you will need to gain the experience, skills, or knowledge to build tiny houses. 

TinyHouseMe is a prominent place where you will get enlisted tiny house properties from different builders. We can help you find the perfect tiny dwellings and meet your expectations.

The future of the tiny house is undoubtedly bright. If you want to buy a tiny house for yourself, reach out to TinyHouseMe. We revert fast and offer you multiple quotations from the most trusted builders in the US.