While the initial hype of the tiny home movement may seem to be leveling out, the general trend doesn’t seem to be going away anytime soon. In fact, the tiny home movement has started evolving to include general downsizing trends in both urban and rural areas. While traditional tiny homes might seem a little extreme for most homebuyers, their popularity and whimsical nature have gained appeal. Smaller homes also offer the possibility to avoid financial stress and have helped to promote the idea of minimalism and maximizing on space utility. Here are some of the reasons that we believe the ideology behind tiny homes is here to stay.
1. Millennials and boomers continuing to downsize
As more baby boomers become empty nesters and millennials are looking to buy their first homes, the real estate business has seen an increase in larger homes for sale and an increased desire for smaller, more reasonably sized homes. This is the result, in part, of baby boomers finding themselves with empty homes. Along with these empty nests comes unnecessarily high utility costs and maintenance requirements for the needs of their new lifestyles. Along the same lines, more and more millennials are beginning their careers and looking to purchase homes and move away from renting. Smaller homes are more affordable for a generation already riddled with student loan debt that is looking to make smart buying decisions. The millennial generation is also more environmentally conscious and appreciate the lower utility costs and usage of a smaller space.
2. Urban micro housing is growing in popularity
As the desire for more affordable housing grows for millennials looking to avoid further increasing their existing debt, micro housing options are becoming an appealing option to many renters. The main appeal of these micro housing units? Location. Many millennials starting their careers are looking to live near popular downtown areas to be closer to work, but aren’t thrilled about the high price tag associated with traditional housing options in these locations. Many of these individuals are more than willing to give up the extra space to be closer to work, social activities and stores.
3. Financial benefits both long and short term
The current trend with housing is that people are staying in the same place for shorter periods of time than in past years. This means that buying a home doesn’t produce the same long term investment perks as it does for those looking to remain permanently in a home. Many people are renting for longer periods of time to avoid having to take out a mortgage, or are buying smaller homes that can be paid off sooner. Home ownership also has high maintenance and repair costs. Have you ever had to fix a plumbing issue? Trust us, you don’t want to. Renting and living in smaller micro homes decreases out of pocket costs for things like repairs, utility costs, and the furniture and appliances you have to buy upfront to furnish your space.
4. Home buyers are starting to appreciate more freedom and flexibility
Having a smaller home means less time cleaning and keeping it up, and more time for doing the things you love. Many home buyers, especially millennials, are opting for smaller homes to free up time for things like traveling and spending time with friends and family. Living in smaller homes and downsizing on possessions also offers more freedom to move if the desire arises. Packing up a smaller home is easier and less expensive if you ever decide you’re ready for a change of scenery or happen to accept that next big career move. Whether downsizing is a trend you love, or simply can’t wrap your mind around, it’s here to stay for now. From financial benefits, to environmental bonuses and financial relief, smaller homes are a clear solution for many millennials and baby boomers looking to free up some funds and time.