The average size of an American home is 2,640 square feet. However, people are becoming increasingly intrigued by the tiny house movement, which includes any dwelling that is under 400 square feet. Since the dawn of time, people have been looking for ways to carve out little spaces to live a simplistic life. Is going tiny better than buying a full-size house, and is it realistic to live in such a small area? Here are a few things to consider.
Living small comes with big savings. In a traditional sized home, you can spend up to $1,000 each month for electric, gas, water, and other basic utilities. However, when you live in a tiny house, the price to keep it comfortable is relatively low. You don’t need a large HVAC system as a wall-mounted heater or fireplace works great. The average price of utilities for a tiny home is a mere $130. The savings in operational costs alone are astounding.
Down Payment Discretion
Mortgage contracts are expensive. The average cost of a traditional home is around $226,000. However, the average cost of a tiny home is a mere $35,000. It’s easy to see that the mortgage payments are more affordable. Additionally, the size of a down payment for a typical home loan is somewhere between 5-20% of the home’s value. When you’re dealing with prices that are so inexpensive, you can realistically get a small home with a down payment of about $7,000 max.
Is Going Tiny Worth It?
Moving from a spacious home to a small one can be quite an adjustment. Millennials are eager to spend their money on experiences rather than a place to live. Since many tiny homes are mobile, a person isn’t tied to one location or a huge property tax bill. They can easily transport their dwelling from one city to another, looking for adventure and a change of scenery. The savings in the cost of the home, utilities, and other expenses are hard to ignore. However, going tiny isn’t for everyone. There are major considerations because of the lack of room. Thankfully, these small dwellings use plenty of ingenuity to utilize the space they have.
If you are considering a tiny home, you should make a list of the pros and cons. The potential savings allow for many life adventures that many couldn’t otherwise afford. Tiny living works great for many people of all ages.
You might also be interested in this article: Tiny Houses: Everything You Need to Know