As populations boom in large cities, the cost of living increases alongside. Many answer the higher monthly expenses by renting instead of buying. In a city like Austin where the median home cost nears $300,000 and a middle class two-bedroom apartment averages $1200 per month, according to Forbes, it becomes difficult to negotiate the living wage with necessary expenses. It is a seller’s market in such popular cities as homes disappear from MLS listings overnight. So, how does tiny home living compare?
The tiny house boom is sweeping the nation with numbers growing in both residential smaller homes as well as states legalizing homes on wheels. With this rise in acceptance has come an increase in building costs. However, tiny home dwellers still report a much lower cost of living versus the average apartment rent or home mortgage in most cities.
When considering housing costs alone, most tiny home buyers pay off their houses in full since opportunity for financing these mobile dwellings is still limited. Buyers who don’t have the upfront capital to pay in full might be happy to know that certified builders like Small House Solutions offer consultations both for financing as well as helping their clients partner with landowners in their area to park their homes legally.
For tiny home dwellers who have their houses already paid off, most report the average monthly cost of living to range from $160-$800 per month. This includes utilities (electric, water, and gas), trash, and land rent. Many report trading or bartering landowners with work for rent systems where they tend farms, gardens, help with upkeep or landscaping, or other odd jobs. This tiny community seems to be filled with pioneers, willing to accept work for payment. This drastically reduces their cost of living and is mutually beneficial, unlike anything you’d likely see with a traditional apartment or house renter.
Others, who financed their tiny house via a personal loan from banks like LightStream, SoFi, or LendingClub, still report their monthly cost of living in the range of $450-$1100 per month. This means that the cost of living for tiny home owners can remain less than 50% of the cost of the average two-bedroom apartment in the city. These people own their home and they also either own their land or are parked in the city or on agricultural property where they have more land—usually well over an acre—than what would be offered in most city homes, with the average being less than a quarter an acre in the suburbs of Austin.
Expert builders such as Small House Solutions offer a completely custom design and build experience from the consultation to the day you leave with your keys in hand. Unlike an apartment that has had hundreds of renters before you or a fixer-upper house so you can stay within that $1100 bottom budget in the city, the tiny home experience allows a client to design, build, and buy their home of their dreams from 100 square feet to nearly 600 square feet—on wheels or stationary.
Is it possible that the tiny house revolution currently taking the world by storm could be the answer to those dreaming of living in a booming metropolis without the price tag that comes with it? Contact Small House Solutions for your consultation today!