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Americans Are Big Fans of Tiny Homes

Home Agents
April 19, 2022
Reading Time: 3 mins read
Americans Are Big Fans of Tiny Homes

In a competitive market with steadily rising home prices, it’s not hard to understand why searches for tiny houses have increased as an affordable alternative. But a new survey shows the fact they have increased 680% over the past 10 years indicates that there are larger factors involved, and interest in tiny houses is no passing fad.

The survey, recently released by HomeAdvisor, also shows searching for accessory dwelling units (ADUs) have also increased at a growing rate of 9% per year. The company surveyed 1,800 people to find out their attitudes toward small homes: whether they’d live in them or buy them, what attracts them to the idea, and the concerns they have.

Results showed that homeowners and would-be homeowners of all ages are seeing the advantages of tiny homes and ADUs. These include affordability, efficiency, and eco-friendliness as well as a way to keep family close–the study shows Americans are using tiny homes to provide adult children with their own space, enable older family members to stay nearby as they age or provide a space for a caregiver or nanny. Homeowners also consider adding ADUs as a way to create an extra income stream by renting them out, or to increase property value.

Additional key findings:

  • 84% believe that ADUs should be allowed in their neighborhood, but 1 in 3 say they should be limited to 720 square feet or less in high-density areas.
  • Nearly 86% said they would live in a tiny house, and 31% would buy one.
  • Of those who would buy a tiny house, 68% said they would consider buying one as their first home.
  • 68% would live there year around.
  • 79% would put a tiny home on their property.
  • The most appealing aspects of tiny home living: 1. Affordability 2. Efficiency 3. Eco-friendliness.
  • 40% of respondents said they would budget between $50,000-$99,999 for a tiny home.
  • The largest number of tiny homes (695) in Portland , with Austin, Los Angeles, New York City, and Seattle also among the top 10.

The takeaway:

HomeAdvisor reports that “Affordability was the most appealing reason to buy a tiny home. Tiny homes cost less than typical homes, even though they have a higher price per square foot: $150 per square foot on average and, in some cases, as much as $400 per square foot. That compares to $100 to $200 per square foot for typical homes.”

“Ready-made tiny houses cost an average of $45,000,” according to HomeAdvisor, “but prices can range from $8,000 to more than $150,000. Nearly seven in 10 (69%) said they’d pay as much as $60,000 for a move-in-ready tiny home, but that isn’t the only option available. Those looking to build their own tiny house can expect to pay anywhere between $14,000 to nearly $55,000 for the materials alone, not counting building permits, floor plans, and other costs.”

“Americans are not only buying tiny houses and ADUs in larger numbers,” HomeAdvisor notes, “they’re also open to continuing the trend. Rising home prices that make traditional single-family homes less affordable are certainly one factor, and rising energy costs are another. Downsizing and a desire to live a greener life with a smaller carbon footprint also play a role.”

To read the full report, click here. 

Tyler Margid is RISMedia’s online news editor. Email him your story ideas at tmargid@rismedia.com. 

Tags: ADUsHomeAdvisorTiny Homes
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Tyler Margid

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