How Much Does It Cost To Build A Tiny House

Before, people dreamed of having a mansion-like house with, at least, three rooms and two bathrooms in it. Now, they are thinking of sizing their dream house down, from a 2,800-square-foot home to a mini abode with an area of 400 square feet or less. But what happened? Why do future homeowners decide to invest in tiny houses instead of building conventional types of residential homes?

More than just being cute structures, there are many reasons why tiny houses are popular these days. Due to their sizes, it is evident that they cost way cheaper than normal houses, and they can be built within a short span of time. Following a minimalistic style, they are more affordable to maintain as well. They are flexible and can be moved from one place to another. It would be your shelter against the unpredictable, while you are traveling on the road.

Aside from their off-the-grid capabilities, tiny houses are also friendly to the environment since they don’t consume too much carbon when being constructed. They can even be used as guest houses, vacation homes, temporary abodes, and/or in-case-of-emergency shelters. But one of the best things about tiny houses is giving you the freedom to design your own home and use the materials you prefer.

So, with all that has been said, how much does it cost to build a tiny house?

Costs in Building Tiny Houses

A tiny house can either be a do-it-yourself (DIY) project or a contractor’s work. But let’s first discuss a DIY tiny house. The average cost of building a tiny house, if it’s a DIY, is $20,000, with actual costs ranging from $5,000 to $40,000. But the prices can go lower or higher, depending on many factors such as the size (how tiny or big will the house be?) and the cost of materials needed to build your mini home.

If for instance, you are having a difficult time in starting your very own tiny house project, you can purchase a DIY tiny house kit, which already contains prefabricated materials and a set of instructions. The basic kit has a minimum cost of $5,000, while it costs almost $20,000 for the most sophisticated kits that come with doors, windows, a shower, and the shell of the tiny house. You only need to work on the finishing touches inside and outside the structure.

Meanwhile, a contractor’s tiny house price averages around $35,000, with actual prices that range from $10,000 to $80,000. Of course, labor costs are already included in the computation, as well as, the size of the tiny house, the choice of materials, and the location where the house will be built. Customization also increases the costs, so if you want to keep it within the budget, then try not to overdo the design.

Factors Affecting the Tiny House Price

Aside from the aforementioned cost details, there are other significant factors that you should know. These factors affect the overall cost of building a tiny house, so be sure to take note of these as well. Otherwise, you may get surprised why the total expenses you need to pay is higher than the amount you have expected.

• Materials for the Construction

Since you can choose what type of materials you want to use, try to look for items that are of high-quality yet friendly to the budget. It would be economical to use recycled materials and let your creativity do the magic.

• Labor Fees

These are only applicable when you want to hire a contractor. In most cases, the laborers charge by the hour. The fees can range from $10 to $20 per hour, depending on the complexities of your mini abode. But keep in mind that, sometimes, a DIY project is more costly and takes more time finish than having it built by a contractor. If you are resourceful enough, then definitely you’ll pay lower than the usual cost to construct a tiny house.

• Installation of Electricity and Plumbing

Another factor that can affect the total tiny house price is the installation of electricity and plumbing works. According to some reports, tiny house owners spend around $300 on setting up the electrical wiring system and $1,000 for the plumbing. However, these costs depend on your location and the availability of water lines.

There are also a number of tiny houses that use solar power to get away from the hassle of the installations. If you want a solar-powered tiny house, then you get to spend around $3,500 to purchase the solar panels.

• Insulation

This is an important aspect in building your tiny house, but it is one of the most costly expenses you need to take care. For a 200-square-foot home, an insulation can cost $1,500. The price is initially big, but it’s worth it when it comes to reducing the cooling and heating costs.

• Permits

Typically, a tiny house is a structure that requires you to get a building permit first before starting its construction. With that said, the cost of permits is, at least, a few hundred dollars each. But to play it safe, do a little research and find out the necessary permits you need to acquire from the local government.

Tiny Houses Versus Other Types of Homes

If you think that tiny houses are expensive properties, then think again. They may be small but that doesn’t mean they consume a lot of your money. Still in doubt? Let’s make a comparison and find out which one is the best deal.

A standard home in the US costs around $188,900 on average. According to Realtor.com, the price of a single-family home can range from $96 to $178 per square foot, depending on the size of the house. Surprisingly, a house with an area between 501 to 1,000 square foot is cheaper than a home with a 500-square-foot area or less. The former costs $96 per square foot, while the latter is $201 per square foot.

The average price of new recreational vehicles or RVs is $122,715. Mobile homes, on the other hand, can range from $30,000 to $70,000, and that’s just the price for a basic unit. Customized models are more expensive, having an initial price of $100,000.

How much does it cost to build a tiny house? It ranges from $5,000 to $80,000, and almost all tiny houses are customized. So, do you still think that tiny houses are expensive? You know it’s definitely worth the price.