What Is The Tiny House Movement in Real Estate?

by john on September 30, 2014

in Anna Maria Island Blog,BLOG: Featured Articles | Anna Maria Island Life and Real Estate

real estate

The Tiny House Movement: a social movement in which people downsize the space that they live in to better a variety of factors around them. Tiny houses come in all shapes, sizes and forms but they focus on smaller spaces and a simplified living style. Unfortunately, this may not be possible for much longer.

The most popular reason that the Tiny House movement has caught on is based on environmental concerns, financial constraints and looking for more freedom in their day to day lives. It is the alternative appeal of living smaller and simpler that has been the major draw to those investing and growing the tiny house movement and why they may not be for everyone. We have put together the biggest barriers to the Tiny House movement and why it may not be, well, quite as big of an idea as expected in the real estate world.

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1. Land – like when it comes to any new building, big or small, land is expensive and in a increasingly short supply. The shortfalls of building a new house is the location that most people desire: land and being close to everything they need. When the tiny house movement meets the land movement, the interest in the low cost of building lessens. The affordability of a tiny house is it’s appeal and once you try to buy land, it’s no longer so appealing anymore and the actual tiny house becomes the least expensive part of the equation.

2. Loans – at this point, banks do not feel that Tiny Houses are a viable option because they don’t have the best resale value. While there are loans available for recreational vehicles and trailers, the interest rate is high and you need personal security to vouch for you. Even if you can lay it on ground you already own and try for a traditional mortgage, your odds are unlikely and this should be taken into account when it comes to the planning process of your own tiny home. There are other options for getting a loan so don’t fear if you have one of these available to you.

3. Laws – many laws kill the dream of the tiny house at the root of the idea with minimum square footage requirements for higher tax assessments. Another factor is that these laws are EVERYWHERE and virtually inescapable. Sewer and water systems in the house are required and can cost more than the house. The bottom line is that the laws around houses are actively against tiny houses for a variety of reasons surrounding the ideas of safety and taxes and if you’re not up for  the challenges that come with a tiny house then buying a home already built with an eco friendly atmosphere from the local real estate company may be better.

4. Social Pressures – in a society where bigger is better, more is better, you can easily be conditioned to want more and more stuff. This strong cultural norm can be an extremely powerful current in maintaining the status quo while Tiny Houses are going in the exact opposite direction and can make you question what you hold dear. When you look at the basis of a tiny house; many people live in them already AROUND THE WORLD: apartments. Much of the tiny house movement is centered around replacing a conventional suburban model with… a tiny house.

So with these things against a movement aimed only for simplicity, is it possible for it to flourish? Is this something worth investing in if it is possible for it to be shut down with a moment’s notice? What do you think?

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Post by John .

John has written 22 articles.

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