Tiny House - Is It a Valuable Real Estate Investment?

The tiny house movement gained massive momentum during the pandemic. As a result, people gradually learned the importance of going minimal with their lifestyle. Although some consider tiny homes a fad, the trend is unstoppable. According to the Global Tiny Homes Market report, the tiny house market will grow by $3.57 billion between 2022 and 2026.

In another survey by Angi's HomeAdvisor, the experts discovered that 86% of the respondents would accept shifting to a tiny home for backyard. 56% of the respondents considered affordability an important reason for choosing a tiny house as a living space. A tiny house runs from $150 to $400 per square foot. The larger homes are almost $100 to $200 per square foot.

Bidding wars are common, and the mortgage rates for normal houses are high now. This made homeownership much more expensive. Compared to normal houses, a tiny home for backyard is affordable and can be paid in cash or financed with home equity loans.

Income-producing dwelling

Since the popularity of tiny houses became prominent, many homeowners agreed to add their properties for extra income. If you have a tiny house, you can rent it as an apartment or office space for remote employees. Similarly, a tiny house is a great option if you are an investor waiting to expand your portfolio. You won't have to bear the headache of buying extra property or land.

Change your single-family property into a multi-family house

A tiny house is a unique opportunity to transform an existing single-family house into a multi-family. TinyHouseMe is the perfect destination to buy a tiny home for backyard, and as per the local zoning laws, you can add a tiny house as an in-law suite or small apartment for kids from here.

Earn money as a vacation rental

Although 30% of the HomeAdvisor survey respondents agreed to buy a tiny house, many agreed to live in one for a short time. Another great way of earning money as a short-term rental, your income stream will automatically increase.

On top of that, if your house looks unique and is in a desirable location, its demand will be high. You can connect with online vacation listing sites to market your house. Airbnb is a suitable place where you will find an entire category dedicated to a tiny home for backyard.

Benefits of tiny houses

A tiny house comes with multiple benefits, and these perks make this super-small prefab home a perfect real estate investment opportunity. Let us check out the biggest pros of tiny houses.

• Freedom and flexibility

People who love the concept of a tiny house are enamored since it provides freedom and flexibility. At TinyHouseMe, you will get tiny houses on foundation and mobile houses. So, it becomes easy to enjoy an adventurous and nomadic lifestyle. You need a sturdy vehicle and a tiny house, and you can live anywhere.

• Reduced cost

The footprint of a tiny house is minuscule; you won't have to worry about the upkeep cost, unlike traditional houses. Building a 2000-square-foot house can cost more compared to a tiny house. On the other hand, a tiny home for backyard has small square footage, so the final price tag is comparatively less.

• Sustainable option

We all are concerned about the environment these days. If the size of your dwelling is small, the amount of waste generation will be less than in a traditional home. In addition, tiny houses use renewable energy sources like solar panels to light up the house. You also get eco-friendly amenities such as composting toilets, which means you support responsible living.

Can a tiny house be considered a good investment?

Investment is all about perspective, and a tiny house can be a good investment only if you are smart about it. According to Spruce, the wholesale cost of a tiny house is almost $23,000. So if you get one at that price and sell it for $56,000, you will get a massive profit, which is not bad.

Final word

A tiny house is undoubtedly the best way of investing in the real estate sector. It is becoming popular among those looking for a simple, affordable, and sustainable lifestyle. At TinyHouseMe, we enlist properties from different builders selling tiny houses. The houses are built keeping in mind the zoning rules and regulations. No matter what your budget is, you will get a suitable small dwelling from us. For more details, you can connect with the builders and get expert guidance.