How Much Is a Tiny House? The Ultimate Guide

The average cost of a tiny home in 2024 is about $67,000.³ However, the actual cost of a tiny home can be considerably higher or lower than the average, depending on various factors.

Factors that will affect the final price of your tiny home include:

• Location
• Size
• Features
• Amenities
• Building materials

To begin budgeting for a tiny home, you’ll have to consider a variety of related costs.

One of the first decisions you will make in your tiny house journey is whether to build your tiny house from scratch or buy one.

Building your own tiny home

If DIY is your jam, building a tiny house could be a creative and cheap path to homeownership. Typically, building a tiny home is more affordable than buying one prebuilt, but it will require a lot of hard work.

Mistakes can cost you more money than you bargained for if you aren’t a skilled or knowledgeable builder. Here are most of the expenses you’ll need to consider:

• Land — If you don’t already own land to build your tiny house on, you’ll need to buy land or lease a lot. The land cost can vary dramatically depending on where you live in the U.S., so do your research. If your tiny home is on a foundation, you may have to pay property taxes. You’ll also need to factor in the cost of getting utilities to your property if you build your home on vacant land.
• Foundation — If you build your tiny home on a foundation, you’ll need to construct it. Tiny home foundations vary in cost, depending on the type of foundation selected. You can expect an average price of $6 to $14 per square foot for a total cost between $12,000 and $28,000.⁴
• Building permits  — If you build your own tiny home, you may need to pay for a local building permit. The national average cost of a building permit is around $1,654 but can be substantially higher depending on your location’s rules and legalities.⁵ If a professional builds your tiny house, you likely won’t have to worry about building permits.
• Square footage — On average, the cost of a tiny house (excluding land or any extras) per square foot is between $300 and $400.⁶ On average, that’s double the price (per square foot) compared to building a traditional home because larger construction jobs use resources more efficiently.⁷
• Materials — Building materials might be the biggest expense when building a tiny home. Expect to spend between $25,000 and $45,000 in materials alone.⁸ To save on the cost of materials, it’s a good idea to shop around, but don’t always select the cheapest option because this could ultimately raise the costs of repairs and maintenance.
• Amenities — The type of amenities you choose will impact the final cost of your tiny dwelling. Consider the quality of items like appliances, furnishings, and decor, as this will all make a difference in how much you are willing and able to spend. To save money on amenities, opt for reclaimed materials or furnishings with dual purposes, like a sofa with built-in storage.

Buying a ready-made tiny home

Building a tiny home takes time, planning, and physical labor. So it’s understandable if you’d prefer to purchase a prebuilt one instead.

A prefabricated tiny home provider can build and deliver your custom tiny home right to your door. Most prebuilt homes will start at around $100,000 or more, depending on the level of luxury and amenities included.⁹

Another option is to buy a pre-owned or used tiny house. Buying pre-owned is often cheaper than buying new, and you may even be able to negotiate the price with the current owner. However, buying pre-owned means the current property may not be set up to your liking, so you may have to invest money in re-customizing it.

Some costs that still apply, even with a prebuilt tiny house, include:

• Homeowners insurance — Getting insurance for a tiny home can be a challenge, especially if you built the house yourself. Details on how the house was constructed, how much it weighs, and how you plan to use it will all factor into the cost of insuring your tiny home. The average rate for a tiny house insurance policy is $852 per year.¹⁰ If you have a mobile tiny home, it may require RV insurance.
• Maintenance and repairs ​​— No matter the size of your home, or if you built it or bought it, you’ll need to factor in the costs of ongoing maintenance and occasional repairs. Luckily, the costs for maintenance and repairs on a tiny home are often a fraction of what you’d pay for a traditional full-size home.
• Utilities — Utility costs will depend on your tiny home’s type and location. Typically, you’ll use the standard utilities such as gas, electric, water, sewer, and internet. Because your space is small, these costs should be less than with a traditional home. One way to further reduce utility costs is by installing your own energy-efficient sources, such as solar panels or rainwater harvesting systems.

Now that you have a better idea of how much a tiny house costs, let’s take a closer look at the types of tiny homes available. The world is your (tiny) oyster!

• Tiny homes on wheels (THOWs). These tiny homes, as their name suggests, are built onto a trailer base with wheels. That way, you can pick up and move whenever it suits your fancy. Another bonus is they’re often more affordable than foundation-built tiny homes.
• Tiny homes on foundations (THOFs). These tiny homes are built in a similar style to a regular-sized house, just… well, smaller.
• Park models(PMRVs). These are basically RV-style tiny homes with wheels. Though they look like stationary (small) homes, they can be moved and are legally required to be 400 square feet or smaller.¹¹

Ready to get started on your own big, tiny journey? Here are the steps to take toward financing a tiny home.

1. Find (and finance) the right land. As mentioned above, along with the cost of the tiny home itself, you also have to figure out a place to put it. If you don’t own land, this may involve buying some for cash or with a land loan.
2. Compare tiny house prices. Next up: Consider the prices laid out above to determine what kind of tiny house you want, including whether you’ll build it yourself or have a construction company build it for you. Always leave some extra wiggle room in your budget for unforeseen expenses!
3. Fund your tiny house construction. Because building your own tiny home isn’t the same thing as buying pre-built, funding the construction project takes a construction loan (short-term loans that cover construction costs) rather than a mortgage. Once your home is built, you may be able to convert the remainder of the loan to a conventional mortgage (or apply for a new one).
4. If you’re buying pre-owned, consider your options. Tiny homes are increasing in popularity but aren’t quite mainstream yet — meaning mainstream mortgage lenders won’t always approve them. If you don’t have enough savings built up to buy your tiny home outright, you might also consider a personal loan, a home equity loan, or a line of credit. Lastly, adding a tiny home to your existing property is a great way to make rental income.

While a few hundred square feet might feel small, tiny homes can make it possible to live more affordably — and that’s a pretty big perk. Although up-front costs will apply whether you decide to build your own tiny home or buy one someone else built for you, chances are you’ll pay far less than you would for a traditional single-family home.

Still deciding if you should buy or rent? We’ve got you covered.