The median cost of these tiny homes is priced as low as $70K up to $150K; the lower price tag is piquing interest, according to the report by Realtor.com.
“It gives people a path to ownership where they can have a minimal down payment- as low as $4000.00. They can stop paying somebody else for your house instead of putting money in your own bank with equity. Housing Expert, Lance Thrailkill said.
In the last five years, there has been a national reduction in home size from a median of 2,112 square feet to 2,035 square feet, or 3.6% less square footage.
There’s a new trend on the rise in the housing market, Thrailkill says. “Particularly Gen Z, there is a big trend toward minimalism. I think that’s something that is playing into it as well. This moves away from having a bunch of things to a simpler life.” He said.
Critics argue the hefty cost for the average square foot is highway robbery priced in some cases around $300 a square foot that’s almost double the average $173 a square foot according to the report. Other complaints include the tiny closets, ladder instead of a stairway upstairs and no back door in some tiny homes.
Thrailkill says the tiny homes aren’t for everyone. It allows renters to get off the “hamster wheel of renting” and to finally realize their dream of home ownership. The problem he says is the high cost of rent that prevents people from saving to make the move. At least, this new market allows more Americans to have an opportunity they didn't have before.