Ready or not, here they come are! Tiny homes and tiny living have become a part of America’s residential landscape. And it comes as no surprise, given the US economy’s inversely proportional relation between the federal minimum wage rates versus the cost of the average US home over the last three-plus decades!
*In 2013, the average home was 2598 sq.ft. ..in 1983, they were only 1725 sq. ft. As homes have gotten larger, the (actual) buying power of the average buyer has substantially lessened.
What’s happened is that the American dream of home ownership has changed, and not simply in shape and size. ‘Minimalism’, ‘sustainability’, and ‘experiential living’ have become lifestyle buzzwords of ‘GenXers’ and millenials everywhere.
As opposed to carrying debt from college into a life that includes personal and home insurance costs along with 30 years of mortgage payments, a growing number of young adults are opting to travel a vastly different course!
Tiny home living requires a minimalistic approach to living and, often, necessitates down-sizing one’s furniture and other worldly possessions, too. Going tiny means learning to utilize mindful, sustainable practices that require less operating capital yet still provide a comfortable living. Many young adults have online businesses or remote working arrangements that pair well with tiny living.
“They want to rid themselves of unnecessary possessions; to not feel beholden to maintaining a too-large house, particularly cleaning it; they want to be out of debt; they want to live more “green”; they want to own a home but don’t want to pay a mortgage; they want to be able to pursue hobbies and travel as they see fit; they want to spend more time with each other or with family (which they say they are able to do because they now have more time, and because they are forced into a small space together); they often want to live off the grid, or at least in a remote area.” – Doree Shafrir / BuzzFeed®
‘Less space, more life‘ seems to be the mentality and it makes sense! As costs associated with raising a family in America have reached the ranks of astronomical, many persons have decided that taking an alternative approach in their own lives might prove more fulfilling. As more ‘tiny home-friendly’ RV parks and tiny home communities arise, the popularity of these smaller and more efficient dwellings will continue to flourish!
While tiny homes may not fit into what has long been recognized as acceptable housing-size definition standards, the need, push and outcry for their formal recognition and acceptance will continue. Real estate interests are heavily invested in the continued success and growth of tiny homes and their communities.
Because growth opportunities have always fueled real estate investment, their vested interests are not too surprising. Although, what may surprise you are the demographic profile statistics for the average tiny home buyer/owner.
- 89% of tiny house owners have less credit card debt than the average American.
- 60% of tiny house owners have no credit card debt at all.
- 55% of tiny house owners have more savings in the bank than the average homeowner.
Here are a few more interesting tidbits about those tiny home owners. A whopping 68% of tiny house owners don’t have any mortgage! Another very interesting fact is that *’two out of five tiny home owners are over 50 years of age’!
Given current statistics and broad demographics, it becomes clear that the ‘tiny home revolution’ can expect amazing growth in 2020 and well beyond!
End / Footnotes:
*1.) BuzzFeed® – ‘Who Benefits From The Tiny House Revolution’ – Doree Shafrir https://buzzfeednews.com/article/doree/who-is-the-tiny-house-revolution-for
2.) ‘Tiny Home Statistics’ – David Morneau/DIY Tiny Homes – https://www.tinysociety.co/articles/tiny-house-statistics/
3.) ‘Florida Tiny Homes – Bring Your Dream To Life’ – https://www.tinyheirloom.com/tiny-homes-florida/
4.) Federal Department of Labor – ‘Wage Rates Under the Fair Labor Standards Act, 1938 – 2009’ – https://dol.gov/
