There are lots of benefits from buying and living in a tiny house. The most obvious is the cost of the house itself.
I have written this blog post for you to SEE the difference in price between traditional homes and tiny houses. This only covers the issue of the price of the house itself. It doesn’t get into other factors such as purchasing land for the tiny house to sit on. I have purposefully excluded the issue of land since many tiny house owners select to park their homes in a friend’s back yard, lease the land, travel, or some similar arrangement. This is just a basic graph to prove a basic point.
According to CBS News, the average cost of a house in the United States is $156,100. The below graph shows the average price of a house, the interest paid and the total of both the house cost and the interest paid (purple). The graphs also shows the same for a tiny house (green). Although I don’t have statistics on the average price of a tiny house, based on my observation I would say the median price is somewhere around $25,000. Some cost less and some that come with all of the bells and whistles cost more.
The graph also shows the interest paid on a 30 year note for a traditional house, and a 15 year note for a tiny house at 4.5% interest.
A typical American family’s rent or mortgage payment represents roughly 30% of their total income. This is before they put a piece of bread on the table or pay their utilities. If a potential home buyer bought a tiny house and gave up the extra square footage of a traditional home, they could quickly pay off their home and could focus their financial efforts elsewhere, such as retirement, vacations, changing careers, more time with their family, and so on.
I look forward to hearing your comments!