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Comparing the True Cost of a Tiny House Versus a Traditional House

Tiny Houses at first glance are much cheaper than traditional houses.  However, let’s take a closer look at the costs involved in tiny house living versus traditional house living.

The cost to build a tiny house is more per square foot, but less overall.

Why? Tiny houses are smaller.  The cheapest square footage in any home, whether tiny or not, is empty space.  The most expensive space per square foot in a home is the kitchen and bathroom, which have appliances installed that need electricity and plumbing.  A tiny house on wheels still has all the appliances and fixtures: a toilet, shower, and sink in the bathroom, and a fridge, sink, and cooking device in the kitchen, just like a “big house”; what we’re eliminating when building tiny is the cheapest space: empty floor space.  That’s why the cost per square foot is higher in a tiny house.

However, in a tiny house, the overall material cost is less than in a traditional house, simply because there’s less space, which means less material, labor, and time to build.

The cost of a tiny house doesn’t include land or hookups for water and electric.

With a tiny house on wheels, whether you’re planning to buy land, lease a spot in an RV park or stay in the backyard of someone you’re renting a space from, you’ll need to factor this cost into your overall budget.  Tiny houses can be connected to RV hookups in an RV park or permanently hooked into water, septic and sewer.  If you’re buying raw land (with no water and power) you’ll need to have a well dug and power connected.

Generally when buying a traditional home it’s already hooked up to utilities and is being sold with a plot of land.  Therefore, be sure to factor in not just the cost of the tiny house itself, but the land and hookups when comparing the cost of a tiny house to a traditional home.

Tiny house financing is often for fewer years than traditional mortgages.

B&B’s tiny houses on wheels are certified by the RVIA and therefore financed like RVs.  RV financing can be through your own bank or through a national lending institution.  As an example, as of 12/21/18 Lightstream’s website lists their RV loans up to 84 months, or 7 years.  Traditional mortgages are often 15 or 30 years.  Tiny houses, because of their smaller price point and smaller finance time, are usually paid off before a traditional mortgage.

Remember, though, that RV loans are just for the tiny house itself, not the land the house is on.  If you’ll be buying a piece of land to put your tiny house on, that would be either paid for all at once or financed separately.

Tiny houses’ utility bills are less.

Tiny houses are smaller than traditional houses, which means less space to heat or cool.  Because they’re on wheels, we never know where they’ll end up, so we build our tiny houses to withstand any climate in the continental United States.  Our shop is in a rather extreme climate zone so we understand the need to be warm in the winter and cool in the summer.  The tiny houses on wheels we have built have been toasty warm in New Hampshire in negative temperatures as well as nice and cool in the Texas heat.  Double-glazed windows, high R-value insulation in the floor, ceiling and walls, and efficient heating and cooling systems used in B&B Tiny Houses make for some pretty tiny utility bills.

If your tiny house design gets big enough, in some cases it can make more sense to just buy a regular house.

B&B Tiny Houses’ longest tiny house is 32′ long (on a 30′ trailer with a small overhang) and our widest tiny houses are 10′ wide (the Kinderhook and the Taconic Park Models).  If you’re not planning on moving your tiny house, “large” tiny houses can be a great way to get some extra elbow room.  When you start going bigger than 10′ x 30′ though, depending on all the other factors mentioned above it may make more financial sense to just have a traditional permanently-affixed home, park home, or modular home built.

To recap, be sure to consider all of the costs involved with living tiny versus living “large”: not just the cost of the houses themselves.

What’s The Difference Between a Modular Home and a Tiny House on Wheels?

Resideo Tiny House, Resideo Tiny Smart Home

Left: A Tiny House on Wheels- the wheels are obscured by shrubbery.  Right: A Modular Home: no wheels, slab foundation (coming soon!)

 

 

 


Tiny Houses on Wheels

Tiny houses on wheels are permanently on the chassis.  The tires can be removed but the house will always be on the trailer. If you want a tiny house on wheels but don’t plan to travel with it, we can also permanently anchor a tiny house on wheels to the ground, remove its tires, and skirt it.  Road-legal limits of 8 1/2′ wide and 13 1/2′ high constrain the size of tiny houses on wheels. We are certified to build tiny houses on wheels by the RVIA, so our tiny houses on wheels are legally considered RVs.  Tiny houses on wheels don’t require a building permit, but you’ll need to make sure RVs are allowed in your zone of your town.

Modular Homes

Modular homes are constructed in pieces in a factory and then transported to the home site to be assembled and attached to the foundation.  They look just like traditional houses– you can’t tell the difference between a modular home from a traditional home just by looking at it– and can be any shape and size as long as each module is small enough to travel from the factory to the build site.  After a modular home is built and inspected inside the factory, it is transported to the site and then permanently attached to a foundation (basement, slab, or pin foundation) where it is inspected again.  B&B Micro Manufacturing is certified to build Industrialized/Modular Homes by the State of Massachusetts.  Modular homes are financed using traditional home financing and there’s no difference in zoning for a modular home versus a traditional site-built home.  B&B Modular designs will be released soon.

Both types of homes are built inside our factory in Massachusetts.  The advantages of factory-building include a quicker build time (we don’t have to stop working in extreme weather) and a less expensive build, especially when the home is built alongside other homes of the same design.

Appendix Q “Tiny House Appendix” Advances in Massachusetts, August 2018

Tiny House Appendix Advances in MA!

From the Board of Building Regulations and Standards (BBRS) August 14, 2018 Regular Meeting Division of Professional Licensure (DPL):

Proposal Number 5-2-2018 – Consider adopting Appendix Q of the International Residential Code pertaining to Tiny Houses.

“On a MOTION by Rich Crowley seconded by Kevin Gallagher it was voted in the majority to advance Appendix Q forward as an amendment to the ninth edition of the code, independent of the tenth edition effort.

On discussion, Rob Anderson indicated that Board members should refrain from making changes to the ninth edition if the effort is to advance to a tenth edition based on the 2018 I-Codes. Jen Hoyt and Kerry Dietz agreed that it becomes awkward and confusing and, by their estimation, there still may be some issues to be resolved with other agencies relating to tiny houses and it makes more sense to review further as part of the tenth edition revision.

Following discussion, the motion was approved via a majority of Board members with Rob Anderson, Jen Hoyt, and Kerry Dietz voting in opposition.”

Next Steps:

According to Rich Crowley, board member of the MA BBRS, the next steps are for a public hearing in November and then a final vote.

“We’ve voted it in now it’s on to public hearing and final vote. After Tuesday’s vote I don’t anticipate any objection… In fact at one of our previous meetings there was one member, the architect, that voiced some opposition to micro units and this time she offered some positive feedback. The Proposal will return with a document that will more than likely get a unanimous approval as well. That should make it to the hearing and  to promulgation along with tiny houses.
…Once the hearing is over the following month we decide on all the items came in front of us at the hearing and vote up or down or move them somewhere but some form of action is taken at that following meeting. tiny houses are more than likely move forward. At that point it’s just two steps away from [promulgation].
Next it goes to Administration and finance. Once they sign off then it goes to the governor’s desk for signature. It takes maybe a day or two after that for the Secretary of State too publish it as a part of our first amendment to the 9th Edition of the mass building code. The date that gets published is the date of becomes Law so to speak.
I think we can get it all done by the first of the year pretty close. I have talked to lieutenant governor who’s very excited and wants to see it move forward. In fact when one of  governor Baker’s main themes is for affordable housing and that’s what this does. Give people a chance to get on that first rung of the ladder.”

Background Info:

What is The Tiny House Appendix?

Appendix Q addresses building code standards for small houses on foundations that have already been adopted into the 2018 International Residential Code (IRC), including standards for lofts, stairs, egresses, and ceiling heights.  To be clear, the adoption of the Tiny House Appendix won’t completely legalize tiny houses in Massachusetts– that’s up to each city– but if it is adopted, it will provide a set of building standards for under 400 sq ft homes where they are legalized, and where they aren’t yet legalized, help legitimize tiny homes in the eyes of local building departments.  Appendix Q does not address tiny houses on wheels, as they are currently considered vehicles.

Read the Tiny House Appendix here.

Appendix Q in Massachusetts

Andrew and Gabriella Morrison have been instrumental in writing and getting the Tiny House Appendix adopted into the national 2018 IRC: now it’s up to each state, and then each city/town in each state, to adopt it into their specific building code.  Andrew presented at a Massachusetts BBRS meeting, introducing Appendix Q last fall.

Why Tiny Houses Can Be for Almost Anyone

Who should own a tiny house?

Tiny houses have risen in popularity over the years, and there’s a good reason for this: tiny houses offer many perks that will appeal to almost anyone. Tiny houses are economical, sustainable, and can even be a great investment or supplementary source of income.

 

Baby Boomers

We’ve had baby boomers choose the tiny house lifestyle for a multitude of reasons. Some want a big change in their life, want a simpler life, or want to travel more. Also, we have had baby boomers choose to live in a tiny house and rent out their traditional house for additional income.

Millennials

With educational loans and rent costs rising, many millennials are delaying buying a house–only 20 percent of millennials have a mortgage. In addition, many millennials find the pros of living more sustainable and minimalistic very desirable. Tiny houses allow millennials to put money that would otherwise be going down the drain towards an investment that they can get back.

Those Wanting a Simpler and more Environmentally Conscious Life

If you’re looking for a change in your life and yearn to get away from all hecticness  that overconsumption can bring, the tiny house lifestyle may be the solution you’ve been seeking. The minimalistic lifestyle is about owning the perfect amount and focusing on your needs and talents in order to become the happiest version of yourself. Because space is a commodity in a tiny house, it makes you to only keep and buy what will add value to your life. Read more about minimalism here.

On and off-grid options allow tiny house owners to reduce their carbon footprint–a net zero carbon footprint is possible in off-grid living. Tiny houses require less materials to build and use significantly less water, heating, and cooling because of their size. In addition, their size limits the amount of waste produced. Check out these two blogs to learn more about simple living and off-grid living.

Families

Families that decide to go tiny may use the house for vacations or live in it full time. Although living with your family in a tiny house will undeniably bring its own challenges, the benefits of living in a tiny house are immeasurable. Teaching your kids about the importance of memories and family are just a few!  Read about this five person family that decided to go tiny full time.  

Families Looking for Flexible and Accessible Housing 

Families with aging parents or those that want to provide their older children with special needs an increased sense of independence can turn to tiny houses. Nursing homes cost an average of $235 daily for a shared room, which is a hefty sum for most families. Our tiny houses can be built to ADA standards and are a much cheaper option. Additionally, the tiny houses can be placed and hooked up to your utility grid–allowing you to be walking distance away from the tiny house (as long as you ensure your town allows tiny houses).

Anyone on the Move or Looking for Weekend Getaways 

Because many tiny houses are on wheels–ours at B&B are on wheels and RVIA certified–tiny houses can go wherever you travel. If you’re a person that loves to travel or are looking for a weekend getaway to go hiking, skiing, or otherwise enjoy yourself and save money by opting out of an expensive hotel, then a tiny house is a perfect fit for you. Whether you decide to build your tiny house on or off-grid, you will have many places to keep your tiny house; the amount of places you can keep your tiny house off grid are endless and in most places you can stay in your on-grid tiny house wherever a RV or trailer is allowed.

 

Developers, Renters, Campgrounds, and Hoteliers 

Developers have started investing in tiny house campgrounds and hotels. These sites offer guests a unique way to travel and experience their surroundings. Check out these tiny house hotels across the United States.In addition, tiny house owners can rent out their tiny house on sites like AirBnB when they are not using it. Read our blog post on turning your tiny house into an investment. Tiny houses provide a great business venture for those that wish to embark.

 

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