Demand for Tiny Homes Rise, Global Market to Touch $4.17 Billion by 2027
Interest in the concept of tiny homes in the U.S. is on the rise and so is the market growth. The limited space offers easy maintenance and cozy living while keeping the planet's health in mind. Tiny homes also open the scope of mobility, you could wake up to the sound of waterfalls and birds, or near the shore if you'd like.
It comes as no surprise that the appetite for this concept is booming more than ever. Dave Zook works with the company Zook Cabins since 2006 says that the market has seen a major rise in the last decade, as per Fox Business. He told the outlet how there's been all types of demands in the last few years from normal consumer demand to short-term rental demand or even RV park demand, the company reported a rise in all the leagues.
A typical home by Zook Cabins features a full-sized bed, work desk, flat screen, TV, loveseat couch, microwave, and also a mini fridge. Tiny homes are generally built in a less crowded space giving people the opportunity to live and work away from the buzz of city life, more so after the pandemic.
It's important to note that the homes made by Zook Cabins are not meant to move and are very much stationary, unlike some tiny homes, reports Fox Business.
"It's made to be put in place and stay in place, although you can move them. But you can put them on a foundation, you can keep it right on a trailer and you can build a nice creative deck around it to where you can really hang out outside," he said.
According to a study conducted by TechNavio, the global tiny home market is expected to boom by $4.17 billion from 2022 to 2027.
How big is tiny?
There is no set rule here. However, the popular opinion is between 60 and 400 square feet, and this range could be stretched to 1000 square feet, not sure if it could pass as 'tiny.' The average size of a tiny home in the U.S. is about 225 square feet, as per a survey by Porch.com
Who is buying tiny homes?
Following the popularity of the "less is more" narrative, people have romanticized the idea of living in a confined space and leaving behind as less carbon footprint as possible. An IPX1031 survey found that Vermont, New Hampshire, and Washington Maine are some of the leading states when it comes to demand for tiny homes. It is the millennials who are buying tiny homes as they are 87% cheaper than traditional homes, and because of the environmental benefits.
Most common in the Mountain States Of America
This has to do with the breathtaking views that higher altitudes offer. According to data collected by Porch, for 10,000 regular home listings, there are only 27 tiny home listings which are about 0.3%. However, the statistics are better in some beautiful states like Idaho where for every 10K listings there are 139 listings which is 1%. There's also rising demand in Colorado, Utah, West Virginia, and Oregon. Just the opposite was observed in populated states like New York, Maryland, and New Jersey where the demand for tiny homes is still pretty low.
How affordable are Tiny Homes?
As mentioned, the price of tiny homes is 87% cheaper than traditional homes. So, it might be a good time to invest in such homes as they will appreciate in the future with the growing demand. In states like New Hampshire, New Jersey, and North Dakota, the price of tiny homes is exactly half the price of big houses. There are some exceptions like Colorado and Hawaii where tiny homes are cheaper. However, it's important to note that tiny homes are pricier if you look at how much you are paying per square foot.
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