With the price of single-family homes so high in the United States and all the issues that can come with affordable housing, there’s a new phenomenon that’s come to market in the last several years called tiny homes.
Some of these tiny homes are built on permanent foundations. That could be a concrete slab or what is referred to in construction as, pier and beam, which means it’s a wooden floor elevated off the ground.
The benefit of a tiny home is the utilization of property, it doesn’t take a large landmass. Some tiny homes have wheels on them with single or dual axles which makes them more like a traditional single wide mobile home. The square footage of a tiny home can be from 100 ft.² to 600 ft.². To make them more livable, much of the square footage has a dual to triple to quad purpose, meaning that the bathroom toilet is also the area where you take a shower. As an example, the kitchen might also serve as an office, multiple functions within the same square footage.
Many cities have rewritten their land-use plans to greater utilize raw land and are now allowing a casita to be built in the backyard or a tiny home in place that could potentially be used as a rental property. Towns where this would work the best are college towns or urban environments.
When we say tiny homes it’s not a joke, the refrigerator or the oven might be two hot plates and a small microwave. The furniture also must serve as multipurpose, meaning that the table you eat on will fold up and be the platform for a bed, desk, or some other purpose. The cost will vary based on the building materials that you use and if you are in a very cold climate you’ll want to utilize and insulate the tiny home to the max. These are also excellent for people who want to live off the grid. Living off the grid means you will have solar running on a 12 V system, maybe even using wood to heat the home.
The cost per square foot obviously varies. If you’re doing 100 ft.² it will be a lot less than if you do 400 to 600 ft.² Price would also range whether you’re buying one already built or if you’re going to build it yourself. When looking at price, it’s still far less than buying a standard traditional single-family home in a subdivision. The tiny home phenomenon is going to be with us for long into the future because of the affordability and the minimization of lifestyle, which is very attractive for a lot of people.
With the lifestyle of many young adults, or millennials, they live at home with their parents into their mid-to-late 20s or even into their 30s. So, a tiny home would be an excellent way to escape their parents' basement and give them some independence with a lifestyle that might be attractive to them. A tiny home in a cluster of 6 to 8 in a desirable area would also be excellent to put on Airbnb or VRBO. Tiny homes are excellent for financial independence and lifestyle changes. Again, real estate is not what most people think. You must think outside the box. Happy real estate investing in the world of tiny homes!!!
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