Despite rising prices and shrinking bank accounts, homeownership is still very much a part of the American dream.
Folks are just thinking a little smaller and it’s sparked what some are calling a “cultural movement” away from soul-sucking mortgages and toward a more sustainable, simple life.
Increasingly, Americans are turning to tiny homes and cleverly converted portable spaces as an affordable alternative to the more traditional suburban houses their parents struggled to pay for.
“With housing prices soaring and incomes struggling to keep pace, it’s no wonder that people are turning to more affordable options,” real estate agent Riley Annen, owner of Companies That Buy Houses, told Fox Business. “Tiny homes offer a solution that’s not just budget-friendly but also incredibly charming.”
It’s not just about the money, though. According to Annen, it’s “a cultural movement” that is, for many, “liberating.”
“There’s something incredibly freeing about downsizing and living with less,” she said. “And the idea of being able to pick up and move your home wherever you please? It’s downright liberating.”
It seems a lot of people want to be free.
“The global tiny homes market is projected to grow by $4.82 billion at an estimated compound annual growth rate of 5.37% between 2023 and 2028, a market research report produced by Technavio indicated,” Fox Business reports. “What’s more, it noted the adoption and purchase of these homes are in ‘high demand’ in the U.S.”
Billionaire Elon Musk got in early on the trend.
Back in 2021, before he bought Twitter, Musk indicated that even he preferred a smaller space.
“My primary home is literally a ~$50k house in Boca Chica / Starbase that I rent from SpaceX,” he wrote. “It’s kinda awesome though.”
“Only house I own is the events house in the Bay Area,” he said. “If I sold it, the house would see less use, unless bought by a big family, which might happen some day.”
My primary home is literally a ~$50k house in Boca Chica / Starbase that I rent from SpaceX. It’s kinda awesome though.
Only house I own is the events house in the Bay Area. If I sold it, the house would see less use, unless bought by a big family, which might happen some day.
— Elon Musk (@elonmusk) June 9, 2021
And, just last week, a Los Angeles-based TikTok influencer went viral for unboxing the foldable home he bought on Amazon for roughly $26,000.
Y’all better go head and get yourselves a Amazon foldable house ‼️ pic.twitter.com/m4748K9xNy
— Mesh (@rahsh33m) January 30, 2024
“I just bought a house on Amazon,” 23-year-old Jeffrey Bryant said. “I didn’t even think twice about it.”
“The house has fold-out walls and ceilings that convert into a kitchenette, bedroom and living area that measures 16.5 feet by 20 feet. After taxes, it cost around $26,000,” according to Fox Business. “It even includes a built-in toilet and shower, though the Tiktoker had yet to do plumbing and electric work at the time, which is likely to drive up the price.”
“As a person of color and a Gen Z, I want to inspire others to make wise decisions with their money,” the proud new homeowner told his followers. “People my age are told that we can’t afford to purchase homes, but I’m proof that it is possible.”
Another TikToker, openhouseaustin, showed off the $89,000 tiny home she financed with a down payment R.V. loan.
@openhouseaustin I pulled a tiny home onto the back of my lot and in generates enough STR income to pay my whole mortgage! I live on a corner lot, but this is also possible for people with a clear path to their backyard! #housesbeforespouses #openhouseaustin #fyp #fypシ ♬ Aesthetic – Tollan Kim
“We bring in about 3,500 a month, which pays my entire mortgage,” she told viewers.
A quick search on YouTube will reveal scores of clever home conversions, from vans and busses to luxury sheds.
(Video: YouTube)
Meanwhile, Fox Business reports:
Freddie Mac’s latest Primary Mortgage Market Survey showed that the average rate for the benchmark 30-year fixed mortgage increased to 6.64% this week, up from 6.63% last week. The 30-year average rate was 6.12% a year ago. At the same time, the rate on the 15-year fixed mortgage edged lower, averaging 5.9% after coming in last week at 5.94%.
Many would-be buyers and sellers are waiting on the sidelines for rates to come down. The latest Fannie Mae national housing survey found an overwhelming majority believe it is best to hold off on making a move until rates come down, with only 17% saying in January it was a good time to buy a home – near a historic low.
As adorable as some of the tiny homes are, Peter Evering, a business development manager at Utopia Property Management in downtown San Diego, told Fox News Digital that it’s still dollars and sense that’s driving the trend.
“This is ultimately driven by economic reasons, the biggest one being the double whammy of rising prices and tight inventory,” he said, according to Fox Business. “This mainly affects the younger strata of would-be buyers, who are increasingly being outpriced in many markets.”
Writers and editors can be contacted at [email protected] with feedback, tips, or corrections.
Melissa Fine is the former executive editor of Casino Player, Strictly Slots, and Poker
Digest magazines. She is a UCLA graduate, news junkie, and dedicated Stargate SG-
1 fan. Melissa currently lives with her dog and two cats in a tiny town in the Sierra
Nevada foothills.
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