Tiny homes today are big business and can be seen on popular house hunting and home improvement televisions shows. Many consider tiny homes as a social movement about changing societal norms and a trend back towards simpler living rather than just an architectural matter.
These small dwellings first became popular with younger adults who love to travel and prefer a minimalist lifestyle that is better for the environment. Many wonder though if tiny homes live up to their hype or whether they are just a passing fad that will be here today and gone tomorrow.
Real Estate Statistics Regarding Tiny Homes & Their Expected Future Worth
An important consideration prior to purchasing real estate is the appreciation or depreciation rates. This is true for tiny homes as well. This is somewhat difficult to figure out as this trend towards tiny house lifestyles is still considered fairly new. Most tiny house homeowners are still living in their same abodes, thus there is a very limited supply of these homes on the resale market. At the moment, this makes it tricky to create an informated decision on whether these homes will appreciate or depreciate over the years.
The current real estate statistics regarding the global tiny homes market looks promising. The tiny home global market is expected to continue its growth at a CAGR (compound annual growth rate) of just under 7 percent for the current 2018 to 2022 period.
In general, ordinary tiny homes are still considered to be a home on wheels by many real estate experts. This means that the tinier houses may be prone to depreciate in home value over time much like a traditional mobile home or RV would. However, there are other factors to be considered when attempting to determine home worth through the upcoming years.
1) Tiny homes have increased in popularity in the last decade due to more people interested in traveling and keeping their housing costs down in the process. Will the market continue to grow? Will the demand outpace the supply?
2) Although most real estate specialists tend to think of tiny homes as homes that will depreciate in value, much like an RV or other mobile home, location can be a key factor of a tiny house's overall future worth. Is the tiny home located on prime real estate with beautiful scenic views? Does the land have the infrastructure to support the home? These answers will directly impact each tiny home's future resale value and overall home worth in the future.
Are Tiny Homes Just a Generational Thing?
Tiny homes have become mainstream as the millennial generation has entered adulthood and became a powerful influence in home markets and the economy in general. So, are tiny houses just a generational thing? Is there another market for tiny homes other than the younger and more environmentally conscious crowd?
Some say yes, and it should be noted that many communities are passing local ordinances that make tiny homes easier to relocate later down-the-road. Other groups that have a potential to attract buyers interested in environmentally friendly homes include retirees looking to downsize and travel during their golden years, families that desire a vacation or summer home and younger adults looking to keep their living costs down right after college or while relocating temporarily due to a job change.
Determining if a Tiny Home Is Right for You?
It is wise to live in a tiny home before investing in one according to real estate professionals. Downsizing from a 1,500 square foot house or apartment to a 350 square foot tiny home is a transition some won't be able to adapt to. With the "nomial" cost of a tiny home relative to the high cost of rent in many U.S. markets, the prospect of building equity early in your life or career is an added value.