Here's What It Actually Costs to Build a Tiny Home
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Tiny home living comes with perks: a minimalist lifestyle, a reduced carbon footprint, and affordability, which is something that’s top of mind as housing prices continue to rise and interest rates remain high. Plus, small space design tricks can make tiny homes just as stylish as full-size homes. Downsizing has never been so chic.
Taking all of these advantages into account, about 73 percent of Americans would consider living in a tiny home, according to a new survey from IPX 1031, a financial company, and 86 percent think petite floor plans are good options for first-time homebuyers. But for those who are seriously considering paring down their possessions and making the transition to living small, there’s a big, looming question: What does a tiny home cost to build?
The cost to build or buy a tiny home in 2024 ranges between $30,000 to $70,000, according to HomeGuide, a marketplace that connects homeowners with local pros. This price range is on par with estimates from other home sites and experts we consulted for this story.
Typically, tiny homes are between 100 to 400 square feet, and prices range from $150 to $450 per square foot. However, location largely influences the cost of building a tiny home. Because of this, you can determine the cost of building a house of a normal size in your region, then scale down the number by about 45 to 50 percent to come up with a ballpark cost of building a high-quality tiny house, says Punit Chugh, founder and operations director of BuildLabs, a Bridgehampton, New York–based architecture and construction firm.
Ahead, we consulted experts to break down tiny home prices, taking into consideration the different types of tiny homes and factoring in some of the unexpected expenses. Unfortunately, hooking up to the municipal sewer line can cost you big bucks.
Types of Tiny Houses
The most significant factors affecting tiny home cost include square footage, materials, customizations, and whether you hire outside labor or build yourself, says Adrian Pedraza, owner of The California Home Buyer and a renovator and certified home inspector who has worked on about 20 tiny home builds.
The smallest tiny homes under 100 square feet can often be built for as little as $10,000 with basic finishes and DIY construction, Pedraza says. Anything under 200 square feet can often be built for under $25,000, but once you go over 300 square feet, costs climb as you’re paying for more materials, explains Ryan Fitzgerald, a real estate agent and the owner of Raleigh Realty in North Carolina who has worked with both buyers and builders of tiny homes. “I’ve seen tiny homes range from $5,000 woodsy huts to $80,000 for highly customized dream homes,” he says. More luxurious 200-square-foot custom tiny homes with high-end finishes can run $70,000 to $150,000.
Prefab tiny homes are less expensive than custom-made dwellings, and a tiny home on a foundation typically costs more than a tiny home on wheels but has a better chance at appreciating in value.
Tiny Home Costs to Consider
Whether you’re looking to move into a tiny home or you’re interested in adding a prefab tiny house to your backyard to serve as an office space or a guest suite, here are the line items you need to account for in your budget. A good rule of thumb: Add about 15 percent to your budget for unforeseen expenses, Fitzgerald suggests. For example, you may need to pay for storage fees during construction, which could run you $100 to $500 per month, he says.
Building Permit
If you’re working with a contractor to build a tiny home on your property, permitting costs are likely factored into their upfront quote. However, if you’re DIYing a tiny home, you’ll need to obtain a permit, which could cost anywhere from $900 to $2,500, according to Element Homes, a custom home builder. The type of permit you’ll need will depend on your county and often whether your tiny home is on a foundation or if it’s on wheels.
Land
You’ll save if you already have a backyard space where you’ll be building a tiny home. But if you need to purchase land for a tiny home, the average cost in the United States is $16,182 per acre, according to Land.com. Land prices vary drastically depending on where you’re looking to buy, though, with the costs ranging from about $4,000 to $5,000 per acre in states like New Mexico, Kansas, and Nebraska up to $117,000 per acre in Rhode Island and $100,000 in New Jersey.
If you’re building a tiny home on a permanent foundation, you’ll also need to factor in property taxes. States with the highest property taxes in 2024 include: New Jersey, Illinois, Connecticut, New Hampshire, and Texas.
If you’re renting a lot for a tiny home on wheels, your costs will depend largely on where you live and can range between $250 to $1,500 a month, according to Element Homes.
Foundation
A foundation for a tiny house ranges from $3,000 to $9,000. Building a tiny home on foundation can help the property appreciate more over time, protect it against weather events and moisture, and may make it easier to insure. The type of foundation you’ll opt for will likely be dedicated by local building codes.
Materials
If you’re not buying a prefab tiny home, materials can account for 30 to 50 percent of your budget and include lumber, countertops, flooring, siding, roofing, and insulation. Customizations largely influence this part of your budget, so splurging on marble countertops over cheap laminate ones will cost more.
A typical budget for tiny home materials falls between $14,000 to $52,000, depending on the brands and upgrades you choose, Fitzgerald says.
The Tiny Life—a tiny home site founded by Ryan Mitchell, who has lived in a 150 square-foot home for years—provides these ranges for common tiny home materials:
Lumber: $1,000 to $5,000
Metal roofing: $500 to $2,000
Flooring: $300 to $1,000
Insulation: $500 to $3,000
Siding: $1,000 to $2,500
Interior finishes: $500-$4,000
Electrical: $750 to $3,000
Trailer (Optional)
If your tiny home is on wheels, you have the flexibility to relocate. While you don’t have to pay foundation costs, you will need a trailer, with tandem axles starting at $5,300, according to Tiny House Basics. Gooseneck trailers that can haul heavier loads start at $9,500.
Fixtures
Budget between $800 to $4,000 for fixtures like sinks, lights, and fans.
“Some amenities that boost livability even in tight quarters are good lighting, ample storage solutions, high ceilings in living areas, and durable flooring,” Fitzgerald says.
Doors and Windows
Doors and windows for tiny homes can range from $1,000 to $6,000, according to HomeGuide.
Appliances
As tiny homes have gained popularity in recent years, many manufacturers have created scaled-down appliances, from slim refrigerators to smaller stackable washers and dryers, to fit floor plans. Tiny home appliances cost between $1,000 to $4,000.
Utility Hook-Ups
If you’re hooking up to a pre-existing electrical line, this may cost you only a few hundred bucks. But if you’re on a rural property and need electrical lines, the cost climbs to $5,000 or more, according to Bob Vila. Connecting to city sewer systems can also be a wild card, with costs ranging from $500 to $20,000.
Solar Panels
Solar panels are a nice upgrade. The initial upfront cost can range from $5,000 to $15,000, Pedraza says, but some tiny homeowners net up to $750 in savings a year on their electric bills.
FAQ
Can You Get a Mortgage for a Tiny Home?
While building or buying a tiny home is typically less expensive than purchasing a single-family home or condo, you may need to bring more cash to the table because securing a mortgage for a tiny home can be difficult. Many lenders won’t finance home loans that are less than $50,000, and they also require that the home have a permanent foundation. However, if you’re buying a prebuilt home, some manufacturers have financing options.
Still, the cost of a tiny home could be about the same or even less than the down payment you’d put on a new home.
How Long Do Tiny Homes Last?
A well-built tiny home can last for 25 years, Fitzgerald says. Some even have warranties up to 50 years or more.
Is It Cheaper to Build or Buy a Tiny Home?
It may be tempting to think a tiny home is an approachable project because it’s small in size. However you still need some solid contracting knowledge to assemble these homes, including plumbing and electric skills and making sure you’re minding building codes. So while you could save by building your own tiny home, it’s best to go with a contractor or a prefab one if you don’t have a construction background.
What Are Some Unexpected Costs When Building a Tiny Home?
Tiny home kits you find online or in home stores can be a good option, but buy wisely, Pedraza warns. Many don’t include important components like windows, doors, plumbing fixtures, or electrical wiring. Factor an extra $5,000 to $15,000 for these “missing” parts of the puzzle, he suggests.
“Also confirm the kit includes the right trailer or chassis to legally transport the tiny home when complete,” Pedraza says.
How to Save Money on a Tiny House?
Look into grant programs that exist for tiny home construction, suggests Chugh. Also, consider how long you want to live in the tiny home. “While it might be cheaper to buy a tiny home, there are creative companies that are optimizing the design-build process to make sure that the clients looking for tiny homes get the highest quality solution, and is indeed your “forever home,” he says. Some other creative ways to save include using salvaged or recycled materials, says Pedraza, and fixtures and appliances in good shape can also be sourced secondhand.
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