How Much Does a Tiny House Actually Cost? Everything You Should Know

The average tiny house cost is low compared to that of a traditional home, contributing to their recent surge in popularity. A tiny house is exactly what it sounds like: A house shrunk down in size (usually around just 225 square feet) with just enough space for the essentials.

These affordable abodes have become increasingly popular as prospective homeowners face high housing costs, especially among those drawn to a less-is-more lifestyle. Here, we’ve broken down how much a tiny house usually costs, whether you plan to build or buy.

How Much Does a Tiny House Cost?

Tiny house cost usually ranges from $30,000 and $60,000, making it an attractive choice for buyers looking to save money by sacrificing a little square footage.

On average, tiny houses cost $150/square foot, but this cost can reach $400/square foot depending on the size, materials, and floor plan. On the other hand, tiny house costs can be cut by opting to build a tiny house using a kit, which could cost as little as $4,000.

Tiny House Cost Factors

Just like a traditional home, a tiny house’s cost is directly related to its size and the amenities used, such as types of flooring, windows, fixtures, and more. Unlike a traditional home, when pricing tiny houses you must also factor in whether it’s built on a permanent foundation or wheels.

Size

The average cost per square footage of a tiny house is $150 and is similar to that of a standard home, so the smaller size equates to a smaller overall price.

The larger a tiny house is, the more materials it requires, which leads to a higher build cost. While it can be tempting to increase the square footage, significant money can be saved by opting for a tinier footprint.

Amenities

Just like any home, higher-priced materials and amenities can add substantial costs to a tiny house’s price per square foot, increasing the $150 per square foot price to upwards of $400 per square foot. Premium flooring, windows, kitchen appliances, plumbing fixtures, and more add up quickly even in a small space.

Foundation

One thing you must consider when building a tiny house is whether you want it sitting on a permanent foundation or mounted on wheels. A foundation costs roughly $4 to $7 per square foot, but you must also plan for the purchase of the land, which can top $150,000.

A tiny home on wheels grants you the freedom of mobility, but a sturdy trailer will cost anywhere from $4,500 to $9,000.

How Much Does It Cost to Build a New Tiny Home?

Building a new tiny home allows you to make it exactly what you want. While this also can save money, it’s not always a sure thing.

Purchasing Land

If you desire to build your tiny home on a permanent foundation or park it in the same spot long-term, you will have to purchase land. This land must also have little to no restrictions to enable you to build a tiny house on it.

If you don’t plan on paying cash for the land, you’ll need to get a land loan from a lender. While possible, obtaining land loans can be more difficult than traditional mortgages. They can be riskier for the lender and often require a higher credit score and a larger down payment.

Materials

The materials alone to build a custom tiny home can run from $14,050 to $60,000. The biggest determining factor for tiny home material cost is the quality of the materials, ranging from builder-grade to premium.

Don’t forget to account for market fluctuations, which can drastically change the cost of things like framing materials, concrete, and more.

Labor

One of the biggest money-saving ways to build a tiny home is to do the labor yourself rather than hiring a builder. You can save 30 to 60 percent by DIYing your tiny house.

While this may be tempting, you shouldn’t attempt to build a tiny house yourself unless you have experience with similar projects. If you have certain experience, you can also choose to be your own general contractor and subcontract larger jobs like foundation, plumbing, and electrical work. While it will cost more to hire a builder, it will take more time to build a home yourself. It’s estimated that a pro can build a tiny house in 120 hours, while a DIYer could take over 480 hours.

If you plan to hire a general contractor, reserve 10 to 20% of your total budget. When shopping general contractors for tiny house builds, look for local GC’s with tiny house experience. This specialized experience may add a little to your overall bill, but it’s worth it to ensure your general contractor is familiar with the process of building a tiny house and everything it entails.

Utility Access

Excluding off-grid homes, tiny houses require the same utilities as traditional homes. If these aren’t already available at your desired build site, be sure to account for the added cost of installing utilities, which can be extensive if your lot is remote.

Taxes

Tiny houses on foundations are taxed just like traditional residences. Check with your state tax authority for details on how tiny houses are taxed and the local tax rates.

How Much Does It Cost to Buy a Tiny Home?

You can save money and time by skipping the build process and buying a tiny house that has already been built. The savings are significantly increased when you buy a used tiny home rather than a new tiny home.

Best of all, a used tiny home on wheels can be towed wherever you want, so you don’t have to worry about finding your tiny house in a specific area.

Here are the prices associated with common types of tiny houses, so you can decide which type fits your budget:

Prefab Tiny House

A prefab tiny house costs between $4,000 and $180,000. The lower end of the range will include basic, smaller houses and tiny house shells, which leave the interior finishing to the buyer.

Tiny House on a Foundation

A tiny house on a foundation costs range from $35,000 to $180,000. Unlike a tiny house on wheels, a tiny house on a foundation requires the purchase of land, which can tack on an extra $150,000.

Tiny House on Wheels

A tiny house trailer typically costs between $60,000 and $80,000. While you can save a lot of money by foregoing the land purchase and opting for a tiny house on wheels, plan on spending more on a bigger vehicle to tow it if you don’t already have one.

Shipping Container Tiny House

A shipping container tiny house typically costs $20,000 to $45,000. You can buy shipping container homes completely finished, or simply purchase the container and do the work yourself.

Tiny House Shed Conversion

A shed tiny house typically costs between $2,000 and $25,000. Shed conversion tiny houses are popular as many sheds are around 100 to 200 square feet, making them the perfect size for a tiny house.