Housing costs are some of the highest monthly bills that people will have during the course of their lifetime. Where you choose to live, the size of home you have, and the amenities that go along with it all contribute to how much it will cost to live each month.
Many people find that living in traditional homes is not cost effective. The average home in the U.S. is around 2,300 square feet and at that size, utilities, water, entertainment, and not to mention mortgage costs can go through the roof.
Tiny homes are a way to get the shelter you need without all of the extra space that can add up to big bucks each month. Tiny house living however is not for the faint of heart. It can take real sacrifice but at the end of the day, you can get everything you need without all the hassle.
Breaking down the costs of living in a tiny home
Heating and cooling
The first and most obvious savings when living in a micro-home is that it does not cost as much to keep the space heated or cooled. Many tiny homes are only about 2-300 square feet in size give or take. Imagine only having to heat and cool one room in your home and that’s the experience you’re looking at.
The cost of natural gas and electricity is skyrocketing each month. The more you can save on costs for these essentials, the more you will have for other aspects of your life.
You may not know it but electricity is more expensive than gas used for heating your home. Consumers often spend more in electric bills cooling their homes or running electric space heaters than they do heating with gas.
With a small home, you don’t have to make a cooling unit work as hard to fill the space with cool air. In fact, many tiny homes do not even need the huge central air units needed to cool average sized homes. Wall units are often more than enough for the typical tiny home to remain cool during high-heat summer months.
In case it wasn’t obvious, when you have a small home, you don’t need as many pieces of furniture to make it functional. In the average multi-family home, you’re looking at couches, chairs, dining room sets, bedroom sets, huge televisions, and all the other stuff you need to fill things out.
In a tiny home, you need a fraction of these items because the entire living space is in one room. Depending on the quality of items you purchase, you may only need to spend a few hundred dollars furnishing a tiny home.
Homes inevitably need maintenance work like paint, new windows, new appliances, and other updates or repairs. In an average sized home, it’s easy to multiply those costs by the dozen. In a tiny home however, there is simply less material to maintain. Should you have to repair or replace a roof, replace windows, install a compost toilet, upgrade a cook top, or other items, you won’t have to pay as much.
The appliances in these homes are also much different animals than in traditional homes. For example heating units are much smaller and require less maintenance costs than traditional forced air furnaces.
Real estate taxes are another cost that home owners need to content with. In a tiny home however, you can position your home on a very small lot. A small lot plus the small home itself translates to a very small taxable value.
Real estate taxes are determined on the market value of a home so a lower cost home is not going to be taxed as much as average sized homes. Tax savings are a huge advantage for home owners as it frees up money for improvements.
Breaking down the costs of living in a tiny home can help you see the benefits of owning one. Cost of operating a home like gas and electricity can be far lower. The cost of furnishing a small home is also substantially less. Many times it can be thousands of dollars to furnish a larger home compared to a smaller one. Lastly the taxable value of a small home is far lower than larger counterparts.