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“Tiny House” is becoming quite the household name, and while such homes are tiny, as a movement they are primed to have a huge impact on the housing market, community development, and the way we look at living in general.
The average tiny house is between 100 and 400 square feet, significantly smaller than the 2,600 square feet that make up typical American homes. Though small, these homes offer a surprising range of architectural and aesthetic diversity.
One major motivation that is driving more and more people towards tiny living is the desire for financial freedom. Only 29.3% of all U.S. homeowners own their homes fully, meaning they do not have a mortgage. For Tiny Housers, though, 68% own their tiny home.
According to a CareerBuilder survey, 8 in 10 American workers say they live paycheck to paycheck each month. A similar Harris Poll study found 78% of American workers live paycheck to paycheck. This can lead people to rely on credit and loans for necessary purchases, including the purchase of a home. For most Americans, 30-50% of income is spent on housing, whether in the form of rent or mortgage, tax, and maintenance payments. Rent builds no equity, and interest payments on a housing purchase compound the original purchase price of a home significantly, driving the cost of living higher.
Compared to the average American, Tiny House dwellers are twice as likely to have more savings, with a median of $10,972 stored in the bank. The average per-capita income of Tiny Home dwellers is $42,038 – only $478 more annually than the average American. This means while the average Tiny Home dweller makes just 1% more than the average American each year, they are twice as likely to have more savings in the bank. 89% of Tiny House dwellers also have less credit card debt than the average American, and 65% are entirely free of credit card debt. This extra money is attractive to people who want to have the financial freedom to travel and enjoy life.
Aside from individual financial freedom, developers are building both stand-alone homes and apartment buildings with Tiny Living in mind. While multi-residence development projects take a few years to reach completion, as they become more commonplace the landscape of working class America will change dramatically. As more working-class Americans move into tiny homes and tiny apartments, their budgets will become more flexible, relieving them of their dependence on credit. The spending power of the average American will grow as a whole.
Most interestingly, Tiny Homes have been printed in under 24-hours with 3-D printing technology, with human labor finishing plumbing and electrical hookups. Imagine the possible uses of this: Millennial housing in college communities; quick community development for employee re-location around new companies; military uses, etc..
Tiny homes are often built with sustainability in mind, which not only reduces monthly utility costs and waste but also the home’s environmental impact when compared to that of traditional homes. Tiny Homes are often built with recycled materials and use renewable energies. More indirectly, the compact size also reduces the desire for frivolous and wasteful spending and consumption of products that contribute to environmental waste.
And, most interesting to me, Tiny Houses can not only help you free up a significant amount of your budget for traveling and exploring the world, but Tiny Homes can provide a place to stay for short periods while traveling and a means of residual income if you rent it out to other travelers (Hello, AirBNB!).
Or, you can take your Tiny Home with you, wherever you go.
https://www.cbsnews.com/news/americans-living-paycheck-to-paycheck/
http://thetinylife.com/what-is-the-tiny-house-movement/
https://ecobnb.com/blog/2017/01/tiny-houses-eco-friendly/
Tiny Homes, Tiny Price: How Tiny Homes Could Change the Landscape "Tiny House" is becoming quite the household name, and while such homes are tiny, as a movement they are primed to have a huge impact on the housing market, community development, and the way we look at living in general.
