While many Americans want to upsize in the COVID-19 pandemic, others are still embracing a tiny home lifestyle, whether as a full residence or just a home office, finds a new survey from IPX1031, a 1031 tax exchange resource. There’s enough desire that investors still think it’s a lucrative investment, too.
Tiny homes are often considered to be 500 square feet or less.
Seventy-two percent of 2,000 Americans, surveyed in November by IPX1031, said they’d consider buying a tiny home to serve as an investment property. Sixty-three percent said they would rent out their tiny home as a long-term rental, while 37% would rent their tiny home as a short-term rental. The ideal monthly rent they’d charge for it is $900 per month for a long-term rental and $145 per night for a short-term rental, the survey found.
The tiny home appeal is growing for a backyard home office, the study also notes. With remote work growing, more than half—or 54%—of Americans say they would buy a tiny office, and 62% of remote workers say they’d consider buying one. More than half of those respondents said they’d be fine with their tiny home office being 299 square feet or smaller. Their most desired amenities for a tiny office would be windows/natural light, heating/AC, a bathroom, and a quiet setting.
Many first-time home buyers may consider a tiny home as a lower-cost way to get into homeownership, as home prices are rising across the country. The price to purchase or build a tiny home can vary, but most cost between $30,000 and $60,000. In comparison, the median price for a starter home is $233,400, according to housing data from the National Association of REALTORS®.
The top 10 states where tiny homes are the most popular are:
- New Hampshire
- Rhode Island