Cost of Tiny Living

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Tiny houses have grown in popularity and are often the target of various news and media reports. The fact that tiny houses are, well tiny, has sparked the imagination of future home owners that they can live a life free from mortgage-debt and higher financial independence. But what are the actual costs of tiny living?


There are a lot of stories regarding the cost building a tiny house, ranging from mere $5,000 DIY shacks, to tricked-out high-tech tiny homes that cost more than $100,000. Ranging from the type of materials that are being used in the construction, to whether you are actually building the house on your own or using contractors, to the price of land in rural or urban areas and zoning restrictions. Construction of a tiny house doesn’t really mean that the decrease in construction costs will be linear compared to regular-sized houses like tiny houses for sale in florida. There are a lot of fixed expenses that have to be incurred and often contractors do charge a higher margin since there is less work.


Furnishing a tiny home can be a challenge since there are many compromises that need to be made. Appliance makers that specialize in tiny-friendly products do tend to charge a premium price for them. So you can expect to spend more on some things in order to furnish your house. The good thing is that there is no need for a lot of furniture and appliances so overall you will still be saving money. It is important to highlight the need for functional but space saving furniture, that can also withstand the rigors of everyday living.

Financing and Insurance

Finding financing for the purchase or construction of a tiny house can be a challenge since tiny homes are still not a mainstream offer when it comes to major financing institutions. There is a perceived higher risk with tiny houses, so the financing institutions do tend to offer higher interest rates and less favorable mortgages to potential tiny house owners. Some people even go as far to finance their homes through credit cards. It is important to keep that in mind when financing your new tiny home.

Homeowner’s insurance works pretty much the same way. The premiums tend to be higher per square foot than the regular-sized homes and there are a number of insurance companies that will not offer insurance to tiny home owners at all.


This is one area where tiny home owners can expect major savings. Depending on the types of materials used, choices for heating and cooling and the layout of the tiny homes, tiny home owners can expect to cut their energy bill to one-quarter or one-fifth of the ones in regular houses. Some utilities will stay the same though (such as cable, internet etc.). Combining tiny houses with solar technology, can create off-the-grid systems that generate even higher savings and are better for the environment. Bear in mind that the initial investment in making your tiny homes energy efficient might be a bit high, but the savings will pay off the investments quite quickly and you will be able to lower your utility bills.

Overall, tiny houses are a more affordable way to solve your housing needs but there are a number of things to consider when making the decision to go tiny. Make sure you are well informed about all of them before making that decision.

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