Tiny homes setting next big trend

SMALL IS SMARTER The tiny homes revolution began a few decades ago, but the financial crisis of 2008 and the coming-of-age of millennials gave it a new impetus. —AFP

ELIZABETHTOWN, Pennsylvania — In a country that nearly always believes bigger is better — think supersize fries, giant cars and 10-gallon hats — more and more Americans are downsizing their living quarters.

Welcome to the world of tiny homes, most of them less than 40 square meters, which savvy buyers are snapping up for their minimalist appeal and much smaller carbon footprints.

The tiny homes revolution, which includes those on foundations and those on wheels, began a few decades ago, but the financial crisis of 2008 and the coming-of-age of millennials gave it a new impetus.

The proliferation of home improvement shows on networks like HGTV fueled the trend, inspiring customers ready to personalize their own small living spaces.

Cost is one of the driving factors — a tiny home of just over 18.6 sq m with a customized interior can go for about $50,000 — a massive savings over a McMansion in the suburbs.

“We have a housing crisis and we have crumbling buildings around us. It’s just hard to find good quality living at an affordable price,” says Brandy Jones, who took the plunge with her husband and two sons.

A huge difference

Eight months ago, they moved into a tiny house in Reading, Pennsylvania, about 100 kilometers northwest of Philadelphia. Jones says that for a new house in the area, the family would have had to budget for about $300,000. The tiny home option “is a huge difference. It makes living affordable.”

In most cases, the savings is not enough of a motivating factor: the average newly built family home in the United States measures about 241 sq m, according to the Census Bureau.

Marcus Stoltzfus, the director of sales and marketing for Liberation Tiny Homes in nearby Leola, says that over the last 40 years, Americans “went into this McMansion phase, where they built those massive homes.”

Now, in some parts of the country, “people are realizing that living with less is very advantageous to your lifestyle.”

Scott Berrier, who moved into a 34.4-sq m home about four months ago with his wife Melissa, says he’s happy not to have as many possessions as before.

No space wasted

“We really like the whole minimalist approach—kind of paring down and not having clutter everywhere and everything,” Berrier explained, adding that his home is simply more functional. “The biggest difference I notice is that we use every single space. There is not any wasted space.”

Roland Figueredo, who plans to leave his New York apartment in July for a tiny house in Oregon, says he’s ready for a change. “We truly are trying to simplify our life and getting rid of our crap,” he said.

Berrier says wanting to live a more minimalist life extends to the environmental impact of home ownership. “You’re not leaving as much of a carbon footprint. You’re not using as much electricity, as much water” as in a traditional home or apartment, he notes.

Despite the advantages, the tiny homes movement is far from widespread. Rough estimates put the number of tiny homes in the United States at a little more than 10,000.

The first sticking point is financing — would-be homeowners are finding it impossible to get traditional loans for nontraditional houses.

Banks are instead offering medium-term loans of up to seven years — at significantly higher interest rates than regular loans.