Could you really be happy in 200 square feet?
5 Reasons to Consider Living in a Tiny House
by Dr. Arnaud Prevot
Need a Bigger Home? Maybe Not
Finding Smaller Furniture
Small House, Happy Home
The Great Recession ended back in 2009, but many are still feeling its sting. The main reason given by all the experts for its severity was the real estate bubble bursting. The Millennial Generation was the first to have grown up (at least in part) with this housing issue. This explains why they are the generation with the lowest current and future levels of home-ownership. Many have turned to other alternatives, such as renting. But, a small, but growing, minority has decided to do something else. They are living mortgage-free. While many home owners would like to not have a mortgage and are dreading having to pay their monthly bill until 2040, a special Tiny House community has made this a reality.
The Tiny House Movement has bloomed in recent years and has sparked the imagination of many people across generational lines. A tiny house is a small house, usually below 200 square feet either built on site or on a trailer. There are many reasons why this is attractive option for potential homeowners. Here are five reasons why downsizing to a tiny house may be the best option for you:
- Lower initial start up costs. There's no putting down $20,000 as part of a down payment. If you purchase the materials and you build the house yourself, you can ensure that your start up costs remain very low.
- Your physical footprint is much smaller. The average square footage of an American home is 2679 SF. Living small also means that you will reduce your energy consumption. Imagine your electric bills and your heating bills!
- Better for the planet. For the ecologically minded, tiny houses are just plain reasonable. The smaller house comes with a smaller amount of trash, smaller carbon footprint, and a lower need for chemical cleaning supplies.
- Lower taxes. The American tax model for real estate is based on square footage. The more area you own, the more you will be paying in taxes. With a smaller house, your tax bill would be significantly lower than if you lived in a 2679 SF home.
- Take it with you. As mentioned above, many have decided to build their tiny houses on large trailers. This allows for people to do what would be unthinkable with a larger home. They can take it along for the ride. Instead of working in stride to sell your home when you move, if you like your home, take it with you.
Calculator: How Much House Can I Afford?
So with the average American home having grown more than 1000 SF since 1973, and the number of people living in the home having dropped, it is very clear to many that smaller may in fact be much better!
Take the Next Step:
- Clear your clutter the fast and easy way with Goodbye Clutter!
- Looking to buy a new home? Use our simple tool that compares different lenders to see what your monthly mortgage payment could be. It's private, only takes a minute and could show you how to save thousands!
- Don't miss these tips for getting organized when you have a limited amount of storage space.
Share your thoughts about this article with the editor.
More Money-Saving Tips for Your Home
- Should I use a HELOC for home remodeling and repairs?
- Should I refinance my mortgage?
- Compare HELOC rates
- Check for a lower homeowners insurance rate
- 3 ways to use a mortgage calculator
- Mortgage calculator: Calculate your payment and more
- Home equity calculator: HELOC vs. line of credit
- How much can additional payments save me on my mortgage?