Many of you have likely seen this article: 5 Reasons Buying A Tiny House Is A Mistake

It’s hard to scroll through the channels after a long days work and not see a tiny home show on one of those addicting home improvement channels. It’s also easy to scoff at the realities of tiny home living. For some it might be a mistake, but for many more, the only real way to access the american dream of home ownership is to downsize. buying-tiny-house-mistake-110216-hero

The aforementioned Forbes Article states “while the cute and often-mobile houses may sound practical — it is, after all, a home with running water and plumbing, appliances, and everything you’d need in a place to live — the truth is, for investment purposes, it’s wildly impractical.” They go on to list 5 points and we are here to offer 5 counter points:


Translation? The trend probably won’t last long. It also means your return on investment is next to none. Here are five reasons why buying a tiny home may not be in your best interest.

Point 1. It’s a fad

Counter Point: It’s a trend

We’ve seen an enormous uptick in submissions to insure tiny homes so if it is a fad, why have these only increased as years go by? We prefer to use the word trend, to note the evolving nature of the tiny house movement. Fads come and go, whereas trends indicate a greater adoption into a wider span of culture. Since the housing crash and Great Recession, people’s investments are changing but not in the direction of bigger is always better. As indicated by Home Depots continued increased sales and high quarterly profits according to Business Insider: “Americans have been investing more in their homes as property prices are on the rise in a subdued U.S. housing market, which is facing a supply crunch.” Tiny Homes are just part of that indication that people are investing in their homes with a hands on approach!

And before you blame Millennials for killing big houses and Home Depot, read this Forbes article: Will The Millennial Generation Kill Home Depot?

“Millennials are redefining the American family. Millennials are delaying marriage and childbirth at rates never seen before. This cultural shift will have a near-term impact on housing: millennials may not need the same space, permanence, and practicality that most Americans want out of their housing. That doesn’t mean they will not have children in the near term and then purchase more affordable and “useful” homes.”

Point 2. Buyers are few

Counter Point: Housing options are few

“Americans have been investing more in their homes as property prices are on the rise in a subdued U.S. housing market, which is facing a supply crunch.” according to Business Insider.

 Point 3. It’s less marketable

Counter Point: Tiny houses are marketable when you look at the reality of the affordable housing crisis

Times are changing and people have lived in small apartments for ages. Look what some of these go for:

$1,100 Apartment in NYC (100 sqft)

What Does it Really Cost to Live in San Francisco?

A tiny house offers more space and a competitive monthly mortgage!

Point 4. It’s too darn small

Counter Point included in the original article: “If you live in a sunny, comfortable climate (think homes in Los Angeles, CA, for instance), the ability to open doors and windows, and enjoy outdoor living spaces year-round could make a tiny home feel expansive.” Hence why they are so popular in Colorado, Oregon, and California. This tiny home in Colorado Springs is going for $200,000! 

5. It’s not less expensive

Counter Point: It depends on what you mean by less expensive. Yes, there are $200,000 tiny homes out there. See or Kent Griswolds for plenty of tiny homes for every budget.

As tiny houses become more common, builders are finding ways to make them more affordable. There are also more tiny house lenders and of course we offer tiny house insurance! Policies can range between $400 to $1,200 a year which is less than I pay for my car insurance.

Only you can determine if going tiny is right for you. And if it is, we are here to protect your tiny home and everything inside.