How Much Does A Tiny House Cost? Could You Afford One?

If you've spent any time on YouTube, TikTok, or Pinterest, you've probably spotted videos about leaving your urban life behind to live in a tiny house and travel the country and you're probably wondering how much does a tiny house cost?

Is a small home obtainable financially? Let's dive into the world of tiny house price tags to find out.

how expensive are tiny houses

How Much Does A Tiny House Cost?

You expect a tiny house to have a tiny price tag when compared to a traditional house. The average price of a home varies based on location, but in the United States, the average price generally sits around $300,000 in most states, with a few exceptions.

Tiny houses are cheaper than the average home, but how cheap they are will depend on the cost of materials and which add-ons you'd like to have in your tiny house.

Tiny house prices can range anywhere from $8,000 to $150,000, but the average cost usually sits between $30,000 and $60,000. Please take note that these prices are about the house and not about the land they sit on. You'll need to add the cost of land to the price tag of the house.

Long Term Consideration

Regular full-sized homes appreciate in value and can be considered a long-term investment that will benefit you later. Tiny houses, on the other hand, may not benefit you in the end.

For starters, tiny houses may not qualify for a mortgage, so you'll have to pay for the home in cash upfront.

It takes a lot of time, effort, cash, and resources to build a tiny house. You have to either build it yourself or hire contractors and builders to do the work for you, and both options require your full attention.

Perhaps you don't mind dedicating yourself to a fun investment like this. Still, one thing to note is that tiny homes don't usually have much resale value. They tend to depreciate over time, unlike regular-sized houses.

Something to consider is that tiny houses are typically seen as a fad. A real possibility is that one day, nobody will want to live in a tiny home. Selling it might not be easy, and you may not be able to sell it for as much as it cost you to build it.

How Much Does It Cost to Make a Tiny House?

The good thing about tiny houses is that you have a good chance of making the home fit into your budget, whatever it may be. The most important part of budgeting for a tiny house is making sure you have the money to afford all the tiny home regulations put in place by your state or country.

Size of Tiny Houses

Your state or country may have requirements regarding the minimum size of tiny houses. In the United States, these regulations vary from state to state. Some states don't have minimum requirements for square footage, while other states do.

There may also be requirements regarding ceiling heights. These differ significantly between states, as well. Some have minimum requirements or maximum restrictions, while other states don't have any limitations.

The regulations that may or may not be put into place where you intend to live will greatly affect your budget, so you should consider that first when you begin planning.

The Requirements

In addition to size and height requirements, some places may have additional requirements such as stairs or a ladder for a loft, emergency exit windows, and bathroom size.

Your house will likely need to be on wheels or on a foundation, which will also greatly affect your budget.

If you're open to the idea of moving, it may be worth your time to research several areas you're interested in living in so you can find the most affordable option.


The add-ons are where your budget can skyrocket from tiny house to average house prices, and it makes the question “how much do tiny houses cost?” difficult to answer. Add-ons are anything that makes your home enjoyable, such as appliances, furniture, decorative flooring and wallpaper, throw pillows, storage compartments, and beyond.

You can choose the bare minimum to make your home liveable, but decorating is arguably the most fun part of building a tiny house.

When creating your budget, consider the perks that are most important to you. If visuals are what you're after, you may want a higher budget for flooring and furniture. If functionality is what you're looking for, allow yourself room to buy expandable tables, hidden closets, and a pullout sofa.

How Much Is a Tiny House on Wheels?

A tiny house on wheels is typically more expensive than a house on a foundation. The average price of these ranges between $60,000 and $80,000.

Although a house on wheels is more expensive, it may be worth it in the long run if you intend to travel frequently. You might save money by not buying land, but that cost will go toward renting space to park your home for the night.

Fortunately, tiny house popularity is rising, and many tiny house communities are popping up that will allow you to park your tiny house. If there isn't a community in the area you're in, look for a mobile home or RV park that will allow you to park your house.

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