Tiny Homes Are Great, But They Share One Major Problem That People Rarely Talk About
July 17, 2019
source: Curbed / GREENMOXIE Magazine
Networks like HGTV have definitely popularized the tiny home craze, and we’re all for it. There’s something pretty magical about living in a cute, cozy home that can be easily transported to new and exciting locations. People who live in tiny homes are choosing to simplify their lives, and the cost of living in one is extremely inexpensive. Plus, most tiny homes built these days are quite environmentally-friendly. As you can tell, the list of perks that tiny homes offer is a very long one.
Although there are many amazing benefits to living in a tiny home, there is one striking negative that many people don’t realize or talk about. When people build tiny homes with the intention of traveling or keeping them on a more isolated, rural piece of property, it doesn’t really affect anyone. However, people who build tiny homes with the plan to keep them in more inhabited areas like city neighbourhoods may not realize the financial effects they have on those around them.
Many people are complaining that when tiny homes move into their neighbourhood, the property value of their own home decreases significantly. Why? Well, tiny homes can range anywhere from $10,000 to $90,000 to build. And when these little homes move onto city lots, the value of other homes in the neighbourhood (which would likely all be upwards of $100,000, even in “undesirable” neighbourhoods) decreases. It’s understandable that city dwellers would be upset about this fact, as they want their homes to be worth as much as possible for future resale value.
To combat this mounting issue, many Home Owners’ Associations (HOAs) put minimal building requirements in place to preserve the character of the neighborhood, property values, and the tax base of the community. “Property values are about uniformity and control and keeping the houses the same,” explained Kim Skobba, associate professor of financial planning, housing, and consumer economics at the University of Georgia. “HOAs are used as an authority to keep out things out of the ordinary. Meaning you would have to incorporate tiny homes in a way that fits in with the neighborhood,” she continued.
If you’ve always wanted to live in a tiny home, don’t let this issue stop you. However, it’s important to understand how tiny home living affects those around you if you wanted to reside in a more metropolitan area. There’s a lot of research that goes into building a tiny home, so make sure that you do yours before beginning the process.