The popularity of tiny homes has expanded due to their affordability and smaller carbon footprint. Industry professionals predict the tiny house market will rapidly expand once again in the next few years.
But why has the popularity of these tiny homes increased so rapidly and who is buying them?
Well, following the onset of COVID-19, many people that lived in cities fled to smaller towns and country homes as they sought out safer environments in the midst of the pandemic.
Although tiny homes will probably never be as popular as the average-sized home, they are becoming increasingly more popular among Baby Boomers and Millennials.
Baby Boomers are right around the age of retirement making them ideal candidates to downsize to a tiny home. Tiny homes are also attractive to Boomers as their move to a tiny home will rid them of their mortgage, letting them enjoy their retirement years with little to no debt.
Portability also plays a major role in Boomer’s interest in this asset class as they are able to tow their tiny home to virtually anywhere, making it easier to travel to see their grandchildren and family.
For Millennials, tiny homes provide the opportunity to actually own a home in a real estate market where many are either priced out or can’t get approved for a mortgage due to their debt load. However, Millennials tend to view tiny homes as a temporary option, just one step on the ladder to “real” homeownership, hoping to eventually graduate from a tiny home to a regular-sized one.
Although tiny houses aren’t as popular as regular homes the market is certainly trending upwards, making it a fantastic time to invest in these miniature houses.