What Does a Tiny House Cost? Prices, Hidden Costs, and Other Factors to Consider

The world of tiny houses can be very exciting! As our society moves more toward simplifying our lives and minimizing our carbon footprint, the idea of owning a tiny house can be very appealing. After all, tiny houses are much more affordable to build, and the energy bills are much lower than a large home. Imagine a home that requires minimal maintenance because of its size. But are there hidden costs associated with these ‘tiny houses’? What does owning a tiny house entail exactly? Let’s look at the pros and cons of having a tiny house and help you avoid spending more than you need to on a tiny house.

What is a Tiny House?

Any house that is 400 square feet or less qualifies as a tiny house. A tiny house will usually include a living room, kitchen, bathroom, and a bed. The bed is usually full-sized or queen-sized. Obviously, these homes are much smaller than a regular house.

How Much Does It Cost to Build a Tiny House?

A tiny house could cost as little as $25,000 or as much as about $180,000 depending on it’s features. A tiny house that is on the low-cost end might be missing a few amenities. With the cost of a regular house being about $280,000 to build you are obviously saving money by building a tiny house. Due to the fact tiny houses cost so much less than regular houses, many people use the opportunity (and extra savings) to get high-end finishes in their homes, such as granite countertops, home cameras or security systems.

Tiny House Prices: What Do You Get for What You Pay?

For the price of a lower-end tiny house, such as a $10,000 or $20,000 house, you may get very few amenities. Some tiny houses don’t have bathrooms. In some states, this could present a problem so it’s best to check the state’s building codes before you commit any capital. There is a wide range of “what you pay and what you get” when it comes to building a tiny house and much of this has to do with what amenities you will choose as well as what building materials used to construct the tiny house.

The Hidden Costs of Tiny Homes

We spoke briefly about checking the various city, state and federal codes before building. There are many other costs associated with tiny homes that people fail to consider. Here are ten hidden costs of buying a tiny home.

1. Zoning Laws
2. Some people have the idea that they will build their tiny home on the property of a friend or family member. However, this is against zoning laws. This is just an example of one of the many zoning laws you may run into when building your tiny home. One good idea is to hire a property surveyor. This is someone who can help you figure out if the property on which you chose to build is the right one for you. They can also help you with the zoning laws in your area about what kinds of features you can have on your tiny house. A property surveyor will usually charge several hundred dollars. Suburban communities usually have very strict zoning laws, so it’s important to have sound advice and cover all your bases legally.

• The Cost of Building Materials
  • Over the past few years, the cost of building materials has gone up substantially. This is due to the pandemic and due to the ebb and flow of building projects during that time, there was a breakdown in the supply chain. Inflation has also caused this price increase. The building materials alone could cost tens of thousands of dollars which could double or even triple the cost of your tiny home.

• The Cost of Land
  • Speaking of inflation, the cost of land has also increased substantially. It could add to the price of your tiny house even more than you expect. Meeting with a realtor to purchase the most affordable land you will help you reduce costs.

• The Cost of Towing the Home (if applicable)
  • Sometimes, people prefer a mobile tiny home instead of a stationary tiny home. This home will have to be towed and you will need to afford the appropriate towing vehicle.

• Utilities
  • Consider living in a tiny home to be living “off the grid.” However, you will still need to pay for electricity, water, and gas. It is important to consider that these will still factor in. The upside is that with a much smaller home, there is less space to heat or cool. Solar panels can be an option, but they can also be quite expensive.

• Loan Costs
  • Lenders will turn down loans for tiny homes due to the cost of the home being so low. If you can’t qualify for the mortgage, you may have to apply for a personal loan which can be much more expensive.

• The Adjustments
  • Going from a few thousand square feet to several hundred square feet can be quite an adjustment. It can be a shock to realize that you may need all new appliances. The expense of this can really add up as you obtain appliances that are made specifically to fit tiny houses.

• Storage
  • Most people can’t fit everything they own into a tiny home. They will have to rent a storage unit to store everything they own that doesn’t fit into a tiny home. The expense of this can escalate quickly, depending on how large your storage unit needs to be.

• Resale Value
  • Tiny homes can be hard to resell. While traditional homes appreciate value, tiny homes frequently do not. Part of the reason is that very few people want to buy tiny homes. The number is much smaller than the number of people who want to buy traditional homes.

1. Tiny Home Insurance
   1. Even though tiny homes are small, you will likely still need to have homeowners insurance. If you have a loan, your lender will likely require you to have homeowners insurance.

Is a Tiny House the Solution for me and my Family?

A tiny house is a decision that is a very personal one. The first recommendation is, of course, to discuss the idea of life in a tiny house with your own family. If you are looking for a way to decide whether a tiny house could be for you, you may want to weigh the pros and cons. If you are looking to downsize, want fewer houses to maintain, and have a property where a tiny house is permitted, building one might be for you. However, if you are nervous about the expenses that may accrue during the process, the necessary space for a family (3 or more individuals), or the potential hurdles with financing, a tiny home may not be the right choice.

Conclusion

Don’t let the hidden costs associated with a tiny house use up all your resources. It may be a better choice to just use your financial resources to make a nice down payment on a traditional home. Either way, we’re here to help!

Ann Jones Realty

Have questions about whether you not to build or buy a tiny home? Why not ask a realtor? In the Brownwood, Texas area, the clear choice is Ann Jones Real Estate. If you’re in the Brownwood area and looking to buy, sell, or rent look to the team at Ann Jones Real Estate. We are ready to assist you in all your realty needs. Helping with locating a property, creating a friendly environment, finding financing options, or selling, Ann Jones and her team are willing to help. They believe that the clients are their purpose and therefore they deserve quality service. If you are interested in learning more, visit the website or contact Ann Jones Real Estate at (325) 646-1500.

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