How Much Does a Tiny House Actually Cost? Everything You Should Know

The average tiny house cost is low compared to that of a traditional home, contributing to their recent surge in popularity. A tiny house is exactly what it sounds like: A house shrunk down in size (usually around just 225 square feet) with just enough space for the essentials.

These affordable abodes have become increasingly popular as prospective homeowners face high housing costs, especially among those drawn to a less-is-more lifestyle. Here, we've broken down how much a tiny house usually costs, whether you plan to build or buy.

How Much Does a Tiny House Cost?

Tiny house cost usually ranges from $30,000 and $60,000, making it an attractive choice for buyers looking to save money by sacrificing a little square footage.

On average, tiny houses cost $150/square foot, but this cost can reach $400/square foot depending on the size, materials, and floor plan. On the other hand, tiny house costs can be cut by opting to build a tiny house using a kit, which could cost as little as $4,000.

Tiny House Cost Factors

Just like a traditional home, a tiny house's cost is directly related to its size and the amenities used, such as types of flooring, windows, fixtures, and more. Unlike a traditional home, when pricing tiny houses you must also factor in whether it's built on a permanent foundation or wheels.

Size

The average cost per square footage of a tiny house is $150 and is similar to that of a standard home, so the smaller size equates to a smaller overall price.

The larger a tiny house is, the more materials it requires, which leads to a higher build cost. While it can be tempting to increase the square footage, significant money can be saved by opting for a tinier footprint.

Amenities

Just like any home, higher-priced materials and amenities can add substantial costs to a tiny house's price per square foot, increasing the $150 per square foot price to upwards of $400 per square foot. Premium flooring, windows, kitchen appliances, plumbing fixtures, and more add up quickly even in a small space.

Foundation

One thing you must consider when building a tiny house is whether you want it sitting on a permanent foundation or mounted on wheels. A foundation costs roughly $4 to $7 per square foot, but you must also plan for the purchase of the land, which can top $150,000.

A tiny home on wheels grants you the freedom of mobility, but a sturdy trailer will cost anywhere from $4,500 to $9,000.

How Much Does It Cost to Build a New Tiny Home?

Building a new tiny home allows you to make it exactly what you want. While this also can save money, it's not always a sure thing.

Purchasing Land

If you desire to build your tiny home on a permanent foundation or park it in the same spot long-term, you will have to purchase land. This land must also have little to no restrictions to enable you to build a tiny house on it.

If you don't plan on paying cash for the land, you'll need to get a land loan from a lender. While possible, obtaining land loans can be more difficult than traditional mortgages. They can be riskier for the lender and often require a higher credit score and a larger down payment.

Materials

The materials alone to build a custom tiny home can run from $14,050 to $60,000. The biggest determining factor for tiny home material cost is the quality of the materials, ranging from builder-grade to premium.

Don't forget to account for market fluctuations, which can drastically change the cost of things like framing materials, concrete, and more.

Labor

One of the biggest money-saving ways to build a tiny home is to do the labor yourself rather than hiring a builder. You can save 30 to 60 percent by DIYing your tiny house.

While this may be tempting, you shouldn't attempt to build a tiny house yourself unless you have experience with similar projects. If you have certain experience, you can also choose to be your own general contractor and subcontract larger jobs like foundation, plumbing, and electrical work. While it will cost more to hire a builder, it will take more time to build a home yourself. It's estimated that a pro can build a tiny house in 120 hours, while a DIYer could take over 480 hours.

If you plan to hire a general contractor, reserve 10 to 20% of your total budget. When shopping general contractors for tiny house builds, look for local GC's with tiny house experience. This specialized experience may add a little to your overall bill, but it's worth it to ensure your general contractor is familiar with the process of building a tiny house and everything it entails.

Utility Access

Excluding off-grid homes, tiny houses require the same utilities as traditional homes. If these aren't already available at your desired build site, be sure to account for the added cost of installing utilities, which can be extensive if your lot is remote.

Taxes

Tiny houses on foundations are taxed just like traditional residences. Check with your state tax authority for details on how tiny houses are taxed and the local tax rates.

How Much Does It Cost to Buy a Tiny Home?

You can save money and time by skipping the build process and buying a tiny house that has already been built. The savings are significantly increased when you buy a used tiny home rather than a new tiny home.

Best of all, a used tiny home on wheels can be towed wherever you want, so you don't have to worry about finding your tiny house in a specific area.

Tip

The process of buying a tiny house on a foundation will be much the same as buying a standard house, while the process of buying a tiny house on wheels may be more similar to buying an RV. Keep this in mind before you start looking for loans.

Here are the prices associated with common types of tiny houses, so you can decide which type fits your budget:

Prefab Tiny House

A prefab tiny house costs between $4,000 and $180,000. The lower end of the range will include basic, smaller houses and tiny house shells, which leave the interior finishing to the buyer.

Tiny House on a Foundation

A tiny house on a foundation costs range from $35,000 to $180,000. Unlike a tiny house on wheels, a tiny house on a foundation requires the purchase of land, which can tack on an extra $150,000.

Tiny House on Wheels

A tiny house trailer typically costs between $60,000 and $80,000. While you can save a lot of money by foregoing the land purchase and opting for a tiny house on wheels, plan on spending more on a bigger vehicle to tow it if you don't already have one.

Shipping Container Tiny House

A shipping container tiny house typically costs $20,000 to $45,000. You can buy shipping container homes completely finished, or simply purchase the container and do the work yourself.

Tiny House Shed Conversion

A shed tiny house typically costs between $2,000 and $25,000. Shed conversion tiny houses are popular as many sheds are around 100 to 200 square feet, making them the perfect size for a tiny house.

Building vs. Buying a Tiny House

Unsure whether you want to build or buy? Here are the main differences between building a tiny house and buying a tiny house to help you decide which is the route for you to take:

Building a Tiny House

Building a tiny house comes with the ability to fully customize the size, layout, finishes, and features. For many, the DIY route is the only way to create a tiny house that matches the vision they have.

You can choose how much of the process you want to have your hands on and hire out certain tasks that you don't feel comfortable tackling yourself. Or, if you desire to build but don't want to be involved in the labor, you can hire out the entire tiny house build.

Buying a Tiny House

Buying a tiny house provides a lower price point and faster move-in time, and it's generally a lot less work than building your own tiny house, even if you don't plan on doing the physical labor yourself.

While there are different types of tiny houses, the main differentiation is if it's on wheels or a foundation. Buying a tiny house on a foundation means it's already sitting on land, whereas a tiny house on wheels will require you to buy or lease a plot of land to park it on. However, with wheels comes the ability to tow your tiny house wherever you want.

Frequently Asked Questions

Is it cheaper to build or buy a tiny house?

It's almost always cheaper to buy a used tiny house than to build a tiny house. However, if you build the tiny house yourself rather than hiring it out, you can save 30 to 60 percent on labor, which can drastically lower the overall cost of the tiny house build.

How long do tiny homes last?

A tiny home can last several decades if properly maintained. Like a standard home, the initial build quality and the durability of the materials used will also have a major impact on the longevity of a tiny house.

Are tiny houses safe in storms?

Tiny houses are considered safe in storms if they are built according to the building codes of the area in which they are intended to be installed. Pay attention to snow loads and wind ratings when building a tiny home to ensure it can withstand Mother Nature.

Read Next: 24 Modern Tiny Homes You Can Buy, Build, Rent or Admire

Read the original article on The Spruce.