Tiny Home Statistics, Facts & Trends

Downsizing as people age has been a common practice, traditionally associated with empty nesters and retirees. However, nowadays, this trend extends beyond these demographics. Millennials and Gen Zs are actively participating in what’s known as the “tiny house movement,” embracing the concept of downsizing living spaces. Moving to a tiny home can bring you a lot of benefits–sustainability, simplified living, mobility, and even financial freedom. 

Whether you’re just considering the notion of residing in a tiny house or actively moving forward to become a delighted owner of your cozy space, acquiring abundant information about this captivating movement is crucial.

Key Takeaways

• The national average cost of a tiny home is only $52,000, which is 87% cheaper compared to the average price of a typical home in the US.
• The average tiny house is about 225 square feet, which is eight times smaller than a regular home that’s 1,900 square feet.
• The average cost per square foot for for-sale tiny houses is $235.
• When it comes to overall affordability, North Dakota tops the list with an average price of $28,000, followed by Arkansas with an average price of $31,700 for tiny homes. This is followed by Kansas with $33,500, Mississippi with $34,500, New Hampshire with $35,200, and Kentucky with $35,300.
• Idaho has 139 tiny home listings per 10,000 regular home listings, making it the state where tiny homes are most popular. This is followed by West Virginia with 94 tiny home listings/10,000 regular listings, Oregon with 87 tiny home listings/10,000 regular listings, and Utah with 81 tiny home listings/10,000 regular listings. 
• 68% of tiny house owners have no mortgage.
• 40% of Americans are willing to spend $50,000 to $99,999 on a move-in ready tiny home. About 23% are willing to spend lower ($30,000 to $49,999), 18% are willing to spend $10,000 to $29,999, and 10% are willing to spend $10,000 or less. Only 9%, however, are willing to spend $100,000 or more.
• Approximately 38% of tiny home owners are over 50, while around 21% fall under the age categories of under 30 and between 30 to 40. Only 18% of tiny home owners are in the 40 to 50 age range.

General Insights

With the increasing costs, tiny homes are attracting more attention from homebuyers. With the affordability of tiny homes, it’s expected that the market will grow in the next few years. 

• North America is expected to account for more than half (57%) of the growth of the global tiny homes market from 2022 to 2027. The global tiny homes market size is expected to grow by 4.17 billion within the forecast period (2022 – 2027). 

• There are about 60,000 tiny home listings on Airbnb. These are listed as a unique stay experience on the website 

• Hosts of tiny homes on Airbnb earned a collective amount of $195 million. There were over 2.5 million nights booked for tiny homes in 2021, making it possible for hosts to earn such an amount. 

• 56% of Americans would consider living in a tiny home. About 86% of Americans would consider buying a tiny home for their first home.  

• Tiny homes can result in a 36% decrease in lifecycle greenhouse gas emissions from materials and inhabitant lifestyle. Lifecycle greenhouse gas emissions include carbon emissions created by the lifecycle of the materials used to build the home, as well as the materials used to maintain it.  

• In addition, tiny homes can result in a 77% decrease in annual carbon emissions. Downsizing to a tiny home can lead to the reduction of carbon emissions from both electricity and natural gas usage.  

• Tiny homes only produce about 2,000 pounds of CO2 emissions annually. Meanwhile, an average-sized home produces 28,000 pounds of C02 emissions each year. 

• It’s estimated that every year roughly 700 new tiny homes are built by certified builders. 

• Over 80% of tiny home owners have less debt than the average US citizen. At the same time, roughly 50% of them have more money saved compared to owners of traditional homes. 

• An average American has $15,250 in credit card debt–enough money to construct a tiny home, or comfortably purchase and maintain a used vehicle. 
• Around 89% of tiny house owners have less credit card debt than an average American. At the same time, about 65% of tiny home owners have zero credit card debt.  

• When it comes to retirement, only 32% of owners of tiny homes have more than $10,000 saved for their retirement. Roughly 62% have less than $5,000 saved for retirement.  

• About 38% of tiny home owners are over 50 years of age. About 21% are under 30 years of age and between 30 to 40 years old. There are only 18% of tiny home owners within the 40 and 50 years old range.  

Cost and Expenses

Living in a tiny home means downsizing. As you downsize, your expenses will also be reduced. People living in tiny homes tend to spend much lower compared to people living in traditional homes–both initially and daily.

• The national average cost of a tiny home is only $52,000. This is 87% cheaper compared to the average price of a typical home in the US. 

• Tiny home owners, however, are paying 62% more per square foot. Despite costing less than an average home, there’s a lot of complexity and detail when it comes to integrating the mains, such as heating, sewage, and electricity, into a relatively small building. 

• Building tiny homes can cost anywhere between $8,000 and $150,000. This price range is far below the typical $200,000 house price in the US. 

• Inhabitants of tiny homes can spend less than $1,000 per month on home-related expenses. Downsizing to a tiny home can save a homeowner a lot more as there are fewer maintenance projects that need to be done.  

• Mortgage payments for a tiny home can be as low as $150 per month. Because of this, a tiny house can be paid off quickly, and almost 70% of tiny home owners pay off their mortgage after their first year. 

• In addition, about 68% of tiny house owners have no mortgage. This is compared to 29.3% of all US homeowners. 

• Mobile tiny homes tend to be cheaper as the foundation can only cost around $4 to $7 per square foot. 

• People can buy prefabricated tiny homes that can cost around $75,000 or more depending on the level of luxury (or features) included. There’s also the option to buy preowned tiny homes, which can cost as little as $30,000. 

Preferences

As more people are buying tiny homes, we start learning more about their preferences, as well as certain living space features that make a tiny home more attractive than others. 

• More than half (55%) of tiny house owners are women. More women own tiny houses than men–only 45% of tiny home owners are men. 

• 81% of Americans are considering adding a tiny home to their property to generate rental income. Of the 81% considering adding a tiny home for rental income, 60% are exploring long-term rentals, while 21% are leaning towards short-term rentals.

• About 54% of Americans prefer mobile tiny homes. 

• 54% of people prefer their tiny homes under 400 sq.ft., which is the usual size of a tiny house.  

• Heating and AC are the most desired tiny home amenities for 60% of people. These are followed by kitchen space (58%), designated bedroom (48%), laundry (43%), and outdoor space with a view (42%).  

• Affordability is the factor with the highest percentage of appeal in tiny homes (65%). This is followed by efficiency (57%), eco-friendliness (48%), and minimal lifestyle (44%). 

• Around 50% of the people who are willing to put a tiny home on their property will do it to create an extra income stream. For 43% of homeowners, it would be a way to provide their adult children with their own space; 33% want to have it so older members of the family can stay nearby. 

• Almost half (40%) of Americans are willing to spend $50,000 to $99,999 on a move-in ready tiny home. About 23% are willing to spend lower ($30,000 to $49,999), 18% are willing to spend $10,000 to $29,999, and 10% are willing to spend $10,000 or less. Only 9%, however, are willing to spend $100,000 or more. 

• About 48% of people are willing to live in a tiny home on a permanent foundation. Meanwhile, 22% prefer a tiny home on a trailer–this is out of the 86% that are willing to live in a tiny home. 

• Of those who would buy a tiny home, about 66% would live in it all year round. Only 38% are willing to live in their tiny homes for at least a decade. 

• About 56% are willing to buy a tiny home and put it on a plot of land they own. Around 18% would put it in their own yard, 11% in a tiny home community, 9% in an RV park or campground, and 5% in a family member’s or friend’s yard. 

• When it comes to renting, 72% of people are only looking to rent a tiny home short term. On the other hand, only 28% are willing to rent a tiny home long-term. 

• People who are willing to rent tiny homes would love to have it on a plot of land they own, too (34%). About 27% are willing to rent a tiny home situated in a tiny home community, 17% want to rent a tiny home in an RV park or campground, 15% want to rent a tiny home in their own yards, and 7% want to rent a tiny home in their friend or family member’s yard. 

• Around 61% of people would live in a tiny home with 1-2 other people. About 24% are willing to live with 3-4 people, 14% wouldn’t want to live with anyone else, and only 1% are willing to live in a tiny home with 5 or more people. 

• For 26% of people, the tiny home should be about 500-600 square feet. Around 38% of people prefer a 300-499 sq. ft. tiny home, and 35% prefer up to 299 sq. ft. 

• For 55% of people, a tiny home would only need one bedroom. About 37% need to have two bedrooms, 5% need three bedrooms, and 3% don’t need any bedrooms in their tiny home. 

• More than half (64%) of people only need one bathroom in a tiny home. About 25% would need 1.5 bathrooms, 10% would need two or more, and 1% don’t need any bathrooms in a tiny home. 

State Data

The price of tiny homes will depend on the current state of the real estate market in a certain location. Some states will have lower-than-average prices, while others will have higher price tags.

• Some of the cheapest tiny homes in America can be bought for less than $40,000 and can be found along the Mississippi River. Some of the states where you can find the cheapest tiny homes include Mississippi, Arkansas, Kansas, Kentucky, and Missouri. 

Tiny Homes Markets

• The cheapest tiny homes (overall) can be found in North Dakota ($28,000). When it comes to affordability, North Dakota tops the list, followed by New Hampshire and New Jersey. 

• Following North Dakota is Arkansas with an average price of $31,700 for tiny homes. This is followed by Kansas with $33,500, Mississippi with $34,500, New Hampshire with $35,200, and Kentucky with $35,300. 

• Hawaii has the most expensive tiny homes with an average price of over $149,100 or $490 per square foot. This makes sense since Hawaii has one of the most expensive housing markets in the country. Aside from Hawaii, tiny homes are also expensive in Montana and New Mexico.  

• Montana is the second state where buying a tiny home is expensive at a price of $78,400. This is followed by California with an average price of $75,600, Connecticut with $74,900, New Mexico with $71,000, and Nevada with $64,800. 

• Tiny homes are expensive to insure in Oklahoma as they cost 242% times greater than the national average. This is followed by Tennessee, Kansas, Texas, and Colorado–mostly because these states have high rates of tornado activity. 

• Portland, Oregon is America’s Tiny Capital based on Instagram data with 695 photos tagged in said location. Included in the Top 10 are California, Texas, and New York.  

• Idaho has 139 tiny home listings per 10,000 regular home listings, making it the state where tiny homes are most popular. This is followed by West Virginia with 94 tiny home listings/10,000 regular listings, Oregon with 87 tiny home listings/10,000 regular listings, and Utah with 81 tiny home listings/10,000 regular listings. 

• A tiny home is 87% cheaper than a traditional home. In Northeastern states, tiny homes are only 10% of the asking price of a regular home. 

• In Hawaii, the price of a tiny home surpasses a typical family income by 183%. This is followed by New Mexico and Montana (143%), South Carolina (109%), and Nevada (107%). 

FAQs

Which states have the most affordable tiny homes?

States like North Dakota, Arkansas, Kansas, Mississippi, and Kentucky have some of the most affordable tiny homes, with prices ranging from $28,000 to $35,300.

What is the national average cost of a tiny home?

The national average cost of a tiny home is $52,000, which is 87% cheaper compared to the average price of a typical home in the US.

What are the top amenities desired by people who want to live in tiny homes?

Heating and AC are the most desired tiny house systems for 60% of people, followed by kitchen space (58%), designated bedroom (48%), laundry (43%), and outdoor space with a view (42%).

What is the range of building costs for tiny homes in the US?

Building tiny homes can cost anywhere between $8,000 and $150,000.

Which state has the most number of tiny homes?

Idaho has the highest number of tiny home listings per 10,000 regular home listings with 139 tiny home listings/10,000 regular listings; indicating a relatively high popularity of tiny homes in the state.

SOURCES

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