10 Essential Questions About Tiny Homes

Homes in the U.S. continue to grow in size. In 2014, the typical home reached 2,690 square feet (250 square meters), the largest recorded, according to U.S. Census Data. In 1995, the average size was 2,095 square feet (195 square meters). Despite this trend of ever-larger homes, there’s also a shift toward their complete opposite — the tiny house.

There is no standard definition for a tiny house, but the website Tiny House Design outlines common traits that these small structures often feature:

Many tiny houses are built by their owners. People drawn to this lifestyle often construct or purchase them because they are more affordable than traditional homes, have a smaller environmental impact, and offer their owners more time and freedom for activities outside of home maintenance.

TV series like "Tiny House Hunters" and "Tiny House Nation" have helped popularize the movement. Additionally, tiny-house building kits are available, and there is a wealth of information about different styles and floor plans online.

Tiny homes aren't just for eco-conscious individuals. In Madison, Wisconsin, they are part of a social experiment aimed at helping the homeless. Approximately six 98-square-foot (9-square-meter) homes have been constructed on the site of a former auto body shop. The shop itself has been renovated to house essential facilities like bathrooms, showers, and a store for the community. Visitors from across the U.S. and even from other countries have come to observe the project; both the new residents and their neighbors are pleased with the results [source: Erickson].

If you're considering living in a tiny house, you may have some questions. Before making the move, here are some important questions to consider.

10: What Are the Costs of Tiny Homes?

One major advantage of buying or constructing a tiny home is the affordable cost. In 2015, the average size of a new single-family home in the U.S. was 2,802 square feet (260 square meters), according to a National Association of Home Builders (NAHB) survey. The price tag for this home was an astonishing $468,318, the highest since the NAHB began tracking home prices in 1995. (The construction cost was $289,415) [source: Taylor]. And that doesn’t include the interest on a typical 30-year mortgage.

In comparison, building your own tiny house costs only around $23,000, while hiring professionals to build one can cost between $30,000 and $50,000. This may explain why 68 percent of tiny home owners are mortgage-free, compared to just 29 percent of traditional homeowners [sources: The Tiny Life, Tiny House Design].

Many tiny home owners have managed to build their homes for under $10,000. For example, one man created his tiny house for just $8,000 by sourcing inexpensive and even free materials through Craigslist. Additionally, the 98-square-foot (9-square-meter) homes built in Madison for the homeless only cost $3,500 each [sources: Erickson]. In fact, many Americans spend more on their cars than tiny home owners do on their entire houses.

9: Is It Possible to Build a Tiny House Anywhere?

Unfortunately, the answer is no. This is one of the biggest challenges. Most cities have zoning laws that separate commercial spaces from residential areas and regulate where a house can be placed on a property, as well as the minimum and maximum size requirements for homes.

For example, in Atlanta, city codes mandate that no single-family home can be smaller than 750 square feet (70 square meters) [source: Blau]. Tiny homes fall into the category of recreational vehicles (RVs), and the city restricts RV living to no more than 30 days at a time. While it's sometimes possible to request a variance to these regulations, approval is not guaranteed. Advocates for tiny homes are working to change these laws in various cities and states.

In the meantime, one possibility is to inquire whether a mobile home park or campground will allow your tiny home. However, this can be difficult; long-term placement at a mobile home park or campground often requires the home to meet specific standards set by organizations like the Recreation Vehicle Industry Association or Modular Home Builders Association, which your tiny house might not meet [source: McIntire].

Another option is to place your tiny house in the backyard of a relative or friend, as many zoning laws permit such "accessory dwelling units," which are also referred to as granny cottages, in-law units, or backyard cottages.

The best case scenario might be to find a piece of land not bound by zoning laws. These properties do exist, but they are often located in more remote or rural locations.

8: Are Tiny Homes Durable and Secure?

A tiny home is typically constructed by its owner on a flatbed trailer, which is then parked on a plot of land. This makes it similar to an RV or travel trailer, and more vulnerable to the forces of nature compared to a traditional house. However, aside from potential weather issues, the key point is that tiny homes aren't governed by the same regulations as conventional houses. They aren't required to meet standard building codes, nor are they held to RV construction regulations [source: Alter].

Tiny house builder Rich Daniels highlighted some essential safety features for a tiny home, even if they aren't legally required. Since the beds are typically in lofted areas, it's important to have a solid railing along the stairs or ladder, and some kind of barrier in the loft to prevent you from accidentally rolling off the bed and falling onto the main floor below. The loft window should also be large enough for emergency escape if the ladder or stairs are blocked.

Air quality and ventilation are crucial in a tiny house. These homes often use wall-mounted propane heaters and gas stoves, which can be a fire risk due to the combustible materials used in their construction. Opting for electric heating might be a safer choice, though it can be more complicated to install. It's also important to ensure the home has controlled ventilation to maintain proper oxygen levels inside [source: Alter].

7: Can Families Live in Tiny Homes?

Many families are thriving in tiny homes. The key to making it work, according to the tiny house community, is thinking outside the box. For example, a family could build multiple tiny homes in close proximity: one for the bedrooms, another for the kitchen, and a third for the shared living space. Alternatively, each home could be designated for different family members—one for the kids, one for the adults, and a third for communal areas. It's also possible to create a larger tiny home, such as one that spans 500 square feet (47 square meters) [source: Mitchell].

One of the biggest challenges for families in tiny homes is providing enough sleeping space and having room for cooking. But with some creativity, these issues can be solved. Instead of adding multiple bedrooms, consider a couch and easy chair that convert into beds. Alternatively, a kids' room could feature bunk beds or a trundle bed. To maximize cooking efficiency, consider adding can racks in the kitchen if canned goods are a staple in your meals, or a freezer if you often store frozen foods [source: Mitchell].

Families can also take advantage of the outdoors by setting up a dining or patio table and chairs right next to their tiny home, creating an extension of their living space in the grass.

6: Where Do You Put All Your Stuff?

Most people will need to downsize their belongings before moving into a tiny house, but these homes can actually be designed with plenty of storage. Think about using space beneath benches, couches, or even the flooring, accessed through a trap door. The ceiling can also be utilized for storage. Don't forget the area beneath your cabinets—this often-overlooked space can be used for storage with sliding drawers [source: Piro]. And be sure to make use of your walls—hanging pots, pans, and mugs, or using hanging baskets as shelves can add extra space.

You can also take advantage of the space outside your tiny home for extra storage. One owner parked a cargo trailer next to their house to store larger items and house overflow [source: Mitchell]. Another created an outdoor deck with storage space beneath it [source: Tiny House Basics]. A third utilized the steps leading up to the front door, adding hinges to each tread to create hidden storage within the steps themselves [source: Tiny House Talk]. Some people even rent traditional storage units for out-of-season clothes or items used infrequently.

Living in a tiny home could also be an opportunity to declutter and simplify your life. It's a chance to evaluate how much you truly need, encouraging you to buy less and borrow more as part of embracing a minimalist lifestyle.

5: What Are the Biggest Benefits of Living in a Tiny House?

One major benefit of living in a tiny house is the drastically reduced cost of homeownership. A 300-square-foot (28-square-meter) home is much more affordable to heat, cool, and light compared to a sprawling 3,400-square-foot (316-square-meter) mansion. Even better, many tiny homeowners enjoy living mortgage-free. In fact, the cost of many tiny homes is comparable to or even less than a traditional down payment for a larger house. And just because a home is small doesn't mean it has to be modest. For example, installing granite countertops or hardwood floors in a tiny house can be just as luxurious as doing so in a larger home.

Living in a tiny home isn't just about saving money — it's also a way to reduce your environmental impact. Many tiny-home enthusiasts are motivated by the desire to leave a smaller ecological footprint, something that's easily achieved when your home is smaller than most people's master bedrooms. Plus, a smaller space means less time spent cleaning and fixing things, freeing up more time to relax, travel, read, watch TV, or visit family and friends.

Many tiny-home residents mention the increased sense of intimacy that comes from living in a small space. There are no kids retreating to separate bedrooms and disappearing until it's time for dinner — instead, everyone interacts frequently. And if you ever need to relocate for work or simply want to travel, your house can move with you [sources: Levin, Miller].

4: What Are the Biggest Drawbacks of Living in a Tiny House?

While the intimacy of tiny living can be a positive, it also means there's little room for privacy. Finding a quiet, solitary space can be challenging in such a small home. If you have children, consider whether there’s enough room for their friends to visit or for sleepovers. One couple sold their tiny house in a remote area because it felt too isolated from the nearest town, especially when storage was limited, and they were dependent on being close to supplies. Additionally, the area lost its internet connection [source: Willett].

Finding a place to park your tiny home can be a real challenge. Your chosen city may have building and zoning laws that specifically prohibit tiny homes. In many cases, municipal officials are unclear on the regulations regarding these homes because the concept is so new. Some people have even had to part with their tiny homes because the city wouldn't allow them to stay. Another consideration is mobility; as you age or face health issues, climbing the stairs to a loft bed could become difficult [source: LaVoie].

One of the biggest drawbacks to tiny-home living is the public's perception. Many people might think you're strange for choosing to live in such a small space.

3: Why Not an RV, Instead? Or a Cabin?

It may seem more straightforward — and cheaper — to move into a trailer or a cabin instead of investing in a tiny home. However, tiny-home enthusiasts have their reasons for preferring their unique living spaces.

Unlike an RV, a tiny home closely resembles a traditional house both in appearance and feel, which is important for those planning to live in it full-time. Furthermore, many trailers lack proper insulation. While tiny homes are typically located in milder climates, those who live in colder areas say it's relatively simple to make a small home well-insulated [source: Tiny House Talk].

Many tiny-home enthusiasts are also deeply concerned about the environment and healthy living. One advantage of tiny homes over RVs is that you can choose the materials you want to build with, avoiding harmful substances like volatile organic compounds (VOCs) that can be found in RVs. However, RVs do have the benefit of being easier to tow and less attention-grabbing than tiny homes [source: Tiny House Talk].

What about cabins? Some argue that tiny homes and cabins are essentially the same, especially if the cabin is small and set on skids instead of a foundation. There’s not much difference in size or structure. Similarly, many tiny-home enthusiasts believe that the concept also extends to houseboats, treehouses, converted buses, and yurts [source: The Tiny House].

2: What's the Resale Market Like?

When it comes to tiny houses, the resale value is generally low. One major reason for this is simple: Only a small percentage of Americans are interested in living in a tiny home. With a limited pool of potential buyers, demand remains low, and prices stay stagnant. The resale market is also impacted because many banks don't recognize tiny homes as legitimate dwellings, meaning they won't provide a mortgage. While most tiny-home owners pay out of pocket, some do need financial assistance. However, banks may hesitate to offer loans for smaller amounts — like $30,000 — since they wouldn't make enough profit from such a small loan [source: Rafter].

Despite these challenges, tiny homes can still be sold. Like any property sale, strategy plays a crucial role. While small-home buyers are looking to downsize, they still want a home that feels spacious and includes features that save space. If your tiny house is on the market, be sure to highlight your storage options. If space is tight, consider adding easy-to-install solutions like hanging pot racks. Creating a welcoming outdoor living area can also help the interior appear larger. Given that many buyers value energy efficiency, make sure your home offers these features, or consider adding them before listing [source: Colley].

1: Are Tiny Homes Just a Fad?

It's uncertain whether the current trend of downsizing will remain long-term. However, here are some reasons why small living spaces might continue to capture Americans' interest.

Urban planners are increasingly embracing the idea of urban infill — a strategy to fit more people into already developed areas. Micro apartments, or micro units, which are essentially compact studios, are becoming highly sought after in cities like New York and Washington, D.C. It's not hard to picture tiny homes being placed in unused city spaces, such as vacant lots scattered around urban areas — this is already happening in D.C. [source: Cater].

Small homes hold particular appeal for cash-strapped young people just starting out and retirees looking to make the most of their savings. With these two groups continuing to grow, the market for tiny homes could expand alongside them. An added perk: Both young adults and retirees could park their tiny homes in their families' backyards, as placing a 'backyard cottage' on your property is legal [source: McCrea].

Critics who believe tiny houses are just a trend point to the fact that homes have been getting larger overall, as we mentioned at the start of this article. They also note that only 1 percent of home buyers purchased homes of 1,000 square feet (93 square meters) or less in 2014 [source: National Association of Realtors]. Time will tell if tiny homes continue to thrive.