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by David Chang, ChFC®, CLU® | Published on July 26, 2022

You can buy a tiny house for the same price as a luxury car.

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The costs of buying a home have skyrocketed since the pandemic. The average sales price in the country is $507,800, hitting an all-time high. With mortgage rates also virtually doubling since the beginning of the year, the cost of buying a new home continues to become more unaffordable. As a result, more home buyers are looking at buying tiny houses. Tiny houses have been growing in popularity as more people adopt a minimalist lifestyle and look for more affordable places to live.

The average single-family house in the United States has grown in size since 2000. The maximum peak was 2,467 square feet in 2015 and it has currently fallen to 2,261 square feet. However, tiny houses range between 100 to 400 square feet, a fraction of a typical home.

The nationwide average cost of a tiny home is $300 per square foot, double that of a traditional home of $150 per square foot. But tiny houses are still cheaper to build. The average cost of a tiny home is $45,000, ranging from $30,000 to $60,000. 

The costs for a tiny house can be as low as $8,000 and as high as $150,000. The wide price range is based on a number of factors.

There are other costs associated with a tiny house that can add up quickly. Here are other costs that many homeowners may not take into account. 

Tiny homes not only cost a fraction of a traditional home, but offer other financial benefits. Utility costs are less since you don't have to spend as much on cooling and heating a smaller space. Property taxes are lower as well. A minimalist lifestyle can also be mentally beneficial. Less physical clutter can lead to a less stressful life. Before taking the leap on a tiny house, make sure you know what the costs are.

Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible.

That is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders).

David S. Chang, ChFC®, CLU® is an award-winning entrepreneur and financial planner with over two decades of experience in the personal finance space. He is a graduate of West Point and a Lieutenant Colonel in the Army National Guard. He has an MBA from the UCLA Anderson School of Management.

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