Tiny Homes Are Affordable, but There's More to Consider

If you have the space and legal clearance, building a tiny home can be an affordable option. According to Fast Company, many tiny homes are becoming more attainable, with several options now available to order from Walmart. One of the retailer's Chinese-made tiny home options is a 19-by-20-foot expandable prefabricated house—costing just $15,900—which unfolds from a shipping container into a studio cottage with insulated walls, windows, and space for a bedroom, living room, kitchen, dining area, and bathroom. Another option is a $17,400 cabin that features aluminum walls, space for a bed and office, and a built-in bathroom.

However, tiny homes are not without their challenges. While initially affordable, there are still additional costs, including renting equipment to unload the house, hiring contractors for the foundation, and paying utility connection fees, not to mention the biggest expense: securing land for the home.

Then there’s the challenge of whether your local zoning laws actually allow you to build something like this, especially if you’re interested in building a tiny house as your main dwelling rather than as an accessory apartment. (Some cities are becoming more flexible: Los Angeles now allows “tiny houses on wheels,” which tend to be much less expensive to build than other ADUs, or accessory dwelling units. And a growing number of cities and states are actively trying to encourage homeowners to build ADUs, or even turn them into condos to sell.)

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