At a time when the average American home continues to get bigger, a contradictory trend has taken the real estate industry by storm.
Most homes built last year were between 1,800 and 2,399 square feet in size, and the median square footage was 2,467, according to the U.S. Census Bureau. The Wall Street Journal pointed out that this high number is a recent development; just 10 years ago, homes were 11 percent smaller, and four decades ago, they were 61 percent smaller.
However, many Americans have turned to a slightly less traditional housing trend: tiny homes.
“Almost 80 percent of tiny home owners own their homes.”
A tiny home is between 100 and 400 square feet. How big is this exactly? Realtor.com explained that well over 100 of these petite pads can comfortably fit on a football field.
Why people love tiny homes
There are many factors that can inspire a homeowner to buy a tiny home. A major one is the ability to own a home without having a mortgage. According to Realtor.com, 78 percent of tiny home owners own their homes, while only 64 percent of regular home owners can say the same. Additionally, 68 percent of tiny home dwellers don’t have a mortgage, compared to just 35 percent of regular home owners.
USA Today pointed out that many millennial first time home buyers may be drawn to the tiny home trend after watching their parents struggle with mortgages, employment and debt during the Great Recession.
“I guess my main goal in living this type of lifestyle is to not have a lot of debt,” Brad Allain, a tiny-home owner in Massachusetts, explained to USA Today. Allain is proud to say he owns his tiny home and doesn’t have a mortgage.
Environmentally conscious citizens love that they can limit their carbon footprint by living in a tiny home. While the typical average-sized home gives off 28,000 pounds of carbon dioxide emissions annually, a tiny home emits an impressive 2,000 pounds in the same time.
Downsides to the trend
There are some disadvantages of tiny home life. First off, they may not be as much of a money-saver as they are believed to be. They have the most expensive per-foot price of any other home size. The average per-foot cost for a home between 0 and 500 square feet is $201. For a 500-square-foot home, this comes out to $100,500.
The average per-foot price for a home that is between 501 and 1,000 square feet drops dramatically to $96, bringing the total for a 501-square-foot home to $48,096 and a 1,000-square-foot home to $96,000. Even if you move up to the next square footage bracket, 1,001-1,500, you can save money. With per-foot price of $100, a 1,001-square-foot home averages $100,100.
There is also a lot more work associated with tiny homes, USA Today explained. Many don’t have running water, so hauling bucketfuls is a daily routine and a composting toilet periodically needs to be emptied.
Despite the added chores, the tiny home trend has caught the attention of many home buyers.
If you think a tiny home is right for you, talk to the experts at Lenox/WesLend Financial or call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind.