Tiny homes are becoming increasingly more popular in America and there are several reasons for this. For many, the idea of leaving a smaller imprint on the planet gives them a sense of satisfaction. For others, it’s the concept of downsizing and having fewer needs to worry about in the form of bills and material belongings. This desire for simplicity is what has led to the Small House Movement, as it is called. Contrary to popular belief, however, small is not the same as tiny. The square footage of a tiny house is between 80-400 square feet, whereas a small house lies between 400 and 1,000 square feet.
In these unprecedented times, many people are reconsidering their future, especially when it comes to their residential needs. The real estate market is feeling the results of the mass migration out of urban areas since COVID-19, and many people are questioning whether they want to even live in the environs. It is no longer customary for multiple generations to live under a single roof, which makes large houses less of a practicality and more of a luxury to display social standing.
The main driver for determining housing statistics in 2020 will be based on millennials between the ages of 26-40 who are buying their first homes. This is a group facing a recession, a global plague, and political unrest. It is not yet certain what direction this will take them, but the current forecast, in general, is that home prices are still rising in addition to mortgage rates. There is no foreseen real estate market crash to coincide with the recession, so it’s logical to assume that we are in a buyer’s market. The data, however, proves otherwise. Sellers are still feeling confident that, aside from a general mass migration away from city apartment rentals, home buyers are staying the course. Tiny apartments are not where this demographic is headed.
It takes a specific type of person to embrace small living and relinquish not only existing material possessions but abstain from buying more. For the people who have no desire to sacrifice space, the real estate market will remain unchanged and they will continue their regular determinants for buying/renting such as location and price.