If you've ever dreamed of living in a tiny home, you may be operating under the assumption that it's relatively inexpensive to purchase one. But as with any home purchase, there are many hidden fees as well as additional ones you need to consider that aren't regularly necessary with a traditional home.

These pint-sized homes vary widely in prices because some are high tech to allow the space to contract or expand when needed. Some tiny houses are built to let you live off the grid, and others are focused on living in luxury.

That said, creating a budget ahead of time and securing financing to purchase a tiny home will help you enter into the process more effectively and ensure you get the home you want. If you want to learn how to create a budget and the average cost of a tiny house, this article is a must-read!

How Much Does a Tiny Home Cost?

So, what is the average tiny home cost in the United States? If you're hoping to get the small full-time home of your dreams, you probably need a bedroom, bathroom, kitchen, and living space. But not all tiny houses are created equally, and that's a good thing!

There are different levels of tiny homes manufactured by major companies, each with their own benefits and price range. Depending on what you're looking for, the price and included amenities will vary! Keep in mind these costs don't include the land you need to park your home on, but we'll cover that later.

The Average Tiny Home

The average cost for these essentials is just under $60,000 for about 206-square-feet of living space. These homes usually have compact appliances and basic furniture included that fit the space, but these are your base model-style tiny homes.

Cheap Tiny Houses

If you're looking for something a little more compact with a smaller footprint, you can usually get a 144-square-foot home for around $20,000–$25,000. These homes are more basic with just the necessities like a toilet and shower, but other amenities may be limited.

Luxurious Small Residences

If you're ready to downsize, but you don't want to give up your luxury lifestyle, you can get a small home that lives up to your expectations. For $150,000–$300,00, you can get yourself a high-end home with bonus features like granite countertops, high-efficiency appliances, and even add-ons like a fold-out patio or hot tub!

These luxury options are decked out with the best furniture, fixings, and other features on the market, specifically designed to fit your space.

What Does it Cost to Build a Tiny Home?

If you're more of a DIY type person, perhaps you're more interested in what it will cost to build your home yourself! Depending on where you live, your construction experience, and the style of home you want, you might be able to build your own home for around $12,000–$35,000.

You might be able to purchase some aspects like plans, chassis, and recycled materials, but overall, building the home yourself will be a more cost-effective way to get precisely what you want.

How to Finance Your Tiny House

When you're ready to buy, and you've found the tiny home of your dreams, it's time to find the right fit for your financing needs! This quick reference guide can help you be ready to finance your tiny home so you can get to living sooner!

1. Check your credit score
2. Decide if you will build or buy
3. Identify your land expenses
4. Determine your expected utility costs
5. Try to see if you qualify for RV loans
6. Finance through your builder
7. See if Community Lending works for you
8. Ask your friends and family for support
9. Consider using a credit card
10. Connect with a builder you like and wait for the right home

Unexpected Tiny House Costs

Before you sell your traditional home and sort through your possessions to keep only what is necessary, there are some costs you need to consider. These expenses aren't always mentioned when you're shopping around, but expecting them can help you create an effective plan before you buy.

• If your home will be mobile, do you have a truck or vehicle that can tow your home? Your vehicle also needs to have a trailer hitch and brake controller to make sure you're safe on the roads.
• Tiny house insurance is necessary to protect your home.
• If you don't have a free place to park your home, you will need to either purchase some land or budget to rent space to live on, which can be anywhere from $500–$1500 a month.
• If you buy land for your home, you will need to need to run amenities like electricity and water to power your home, unless you decide to live off the grid.

Where to Start

When it comes to creating a budget for your tiny home, there isn't a one-size-fits-all plan that will suit each individual or family. The cost of your home will be unique to your style and needs. Creating a budget when you're still in the planning phase will help you better understand what type of home you can afford or how much more you'll need to save before you can buy.

Like any home purchase, it's best not to rush into anything that isn't the right fit for you. Take some time to look at different models available in your area, take some time to walk through one, and, if possible, spend a few nights in one before you commit!

Owning a tiny home will look different for each person, but creating a budget with these tips can help you make the right purchase decision! For more tiny living resources, check out these other insightful articles on our blog! If you're interested in expert tiny home consulting services, contact us or schedule a consultation to get started!

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