Tiny Houses – Fun, Financially Beneficial, But Practical?

Owning a home is an American dream for many people. However, most people should wake up to the fact that owning a home is a serious financial and maintenance-intensive investment. The average cost of a new house can be as high as $400,000. Most homes offer about an average of 2,000 to 2,400 square footage. The average monthly mortgage payment is about $1,000.

However, that does not take into account all home-related costs. Like food, insurance, septic tank maintenance, and all other home-related costs. Most homeowners pay double or triple the amount of their monthly mortgage payment to maintain their homes. What most people also don’t take consider is that home ownership demands intense, physical maintenance.

Homeowners must spend a lot time dealing with home system breakdowns and repairs. Or, hiring home repair professionals to enact such repairs at great expense. Yes, owning a home is an American dream. Still, it can also be a financial nightmare. I have heard about how many people are turning to tiny houses to cut down on home related financial costs.

Tiny houses are a fourth of the size of an average sized house. Or, even smaller. Most tiny houses offer anywhere from 100 to 800 square feet of space. Almost all tiny houses are mobile, can be hitched to trucks, and moved just about anywhere.

Financial Benefits

You can buy a pre-fabricated tiny house, or the materials to build one, for as little as $10,000. Or, you can get a personal loan, or a loan for a recreational vehicle, for up to $50,000. You can only get a mortgage for homes that are built on permanent foundations. So, you don’t ever have to worry about mortgage payments with a tiny house. The standard of living payments for a tiny house owner are also significantly minimized.

The cost for utility bills could be $30, $40, or $50 a month. All combined tiny house standard of living costs could easily be hundred of dollars a month. And by hundreds of dollars, I mean in the low three-figures.

Tiny House Maintenance Costs

The headaches that come with tiny living is trading standard of living costs with maintenance costs. Most tiny houses come with wheels, or, are easy to move. You can put it on the property of friends and relatives, if possible If you buy land to situate a tiny house, you will still have to pay for all associated property and maintenance taxes.  Tiny house living allows you to move whenever you want.

So, that means you will have to pay for RV registration costs. And, paying moving costs to settle into RV, trailer parks, or available public land.


There are numerous zoning laws that prohibit where a tiny house may be situated. There a lot of public land areas where tiny houses are just not allowed. Tiny houses are usually not allowed on land designated for houses with permanent foundations. Owners of tiny houses are free to go anywhere, but zoning laws and bureaucracy severely restricts such freedoms.


Tiny house living is preferable for single people or couples. You just won’t have enough living space available if you are expecting a child. Or, if you have a large family. There won’t be enough space for parties or get togethers with friends. Also, unless you are used to minimalist living, you won’t have space for many material items.

Trading Average-Sized Problems for a Miniature Version?

Tiny houses are much easier to clean than an average sized house. They are also less of a financial burden to deal with for a homeowner. While all of these things are true to some extent, that doesn’t mean that owning a tiny house doesn’t come with its own set of miniaturized burdens.

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Posted in: Personal Finance

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