by Shane Thompson, Asset Vu Real Estate Brokerage, Roseville, CA
I think it is safe to assume that in 2018 we will see more home owners and first time home buyers making the shift towards owning a tiny home or smaller dwelling unit. This has been a growing market segment over the last several years and for good reason. The initial cost to acquire one is low and the energy needs to sustain comfortable and functional daily living is substantially lower than that of other dwelling options. In this article I would like to focus on detached tiny homes and how they are being used so that our readers can get a feel for how this shift is changing the future of our housing market. I think many people assume that this movement has not reached California yet, but there are full blown housing developments under way featuring these small energy efficient homes.
Stand Alone Units
These structures generally don’t conform to the conditions and restrictions placed on structures located in developed communities so they are often located on property where these conditions and restrictions don’t exist. The most common location would be country property or land where a portable housing unit is permitted to park for an extended period of time. Some like the tiny home concept for their portability, enabling them to relocate to new locations periodically. Others like the low cost associated with their housing needs.
Our societies debt laden past and economic struggles have many seeking a debt free future. They want more control over their necessity for employment and ability to travel. In addition they want complete control over the improvements and maintenance to their living structures which multi-unit housing does not offer them. I have also heard that it is the freedom and independence that these stand alone structures provide that has so many drawn to them.
Second Unit Housing
Another very popular and growing application of these small homes is there use as a second living unit on property that already has a main living structure. We have seen many purchasing country homes or homes with large lots in areas where restrictions are minimal for the relocation of a tiny home on their land. The most common reason for their desire to have these second housing units is for relocation of their retired parents, many of whom are living on limited incomes. This supplies their family members with clean, modern, and safe housing while giving each their own space so that they can still enjoy the freedoms of independent living.
The second highest use is for rental income with the goal being accelerated payoff of their existing mortgage as part of their overall retirement plan. Many are having great success with this. If rented out as a short term rental like many do using sites such as Airbnb.com the owner can secure premium rates while enabling use of the unit for friends and family when they come to visit. This has become a very popular trend in the state of Washington right now and we are starting to see it bleed down into both Oregon and California.
Tiny Home Communities
Some cities with dense population count have permitted the development of tiny home community projects in an effort to offer affordable housing for those in need. This was an outstanding concept that came to fruition at a time when the need was highest. There are so many that have been priced out of our housing market and others who just simply live off of very little means. These tiny home developments offer a great solution for those seeking there own private residence where expenses can be better managed.
You can also find some of these little communities popping up in counties where you would least expect it. For example, in Sonoma County, California where they are known for their wine as well as their above average housing prices there is a new development that launched pre-construction sales of their tiny home models in 2015. This is a well planned out community that features a recreation center as well as independent on-site storage. It is without hesitation that I say this trend is not only here to stay, but that we will see strong growth in this housing model over the next several years.
Big Design In A Small Package
Some tiny homes may not feel as small as they actually are. Design concepts can include many of the latest and greatest finishes and treatments as well as luxurious fixtures and amenities. Floor plans can be quite ingenious offering up lots of room to move around and store your belongings. Many of these small homes also feature lots of windows so that natural light can pour in connecting the outside with the inside while giving the appearance of more space.
With Wi-Fi connected smart homes being the latest craze we are seeing this concept roll out into the tiny home movement as well. Blinds that open and close remotely, door locks that open via smart phone, lighting elements controlled remotely, learning thermostats, and much more. Now of course a tiny home can be extremely inexpensive or can add up to a sizable investment depending upon what you choose to include in its design. One thing is for certain though. When these homes range in size between 220 – 720 square feet materials can only add up to so much. This usually means that a tiny home is only limited by the purchaser’s vision.
Whether a small house is the right option for you or not I hope that this article gave you some insight as to this trending market segment. I thoroughly enjoy studying the trends in home design as well as the needs of our consumers. Housing is something that should be available to everyone. I think that this movement fills a need for many Americans and I hope that people continue to be as creative in the years ahead.
For those interested in doing some research on land or small housing opportunities here is a link for free access to our MLS system: FREE MLS. You are also welcome to contact the author directly by clicking on the following link: Email Shane.
Asset Vu Real Estate Brokerage is licensed by the California BRE – ID 01803537
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