Tiny Houses

CNBC: Demand for Tiny Houses Is on the Rise

The spike in popularity is causing tiny home prices to climb.

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The tiny home trend isn’t planning on going away anytime soon. Made popular by TV shows like “Tiny House, Big Living,” “Tiny House Nation” and “Tiny House Hunters,” demand for smaller homes is on the rise.

According to Realtor.com, homes that are less than 500 square feet are appreciating twice as fast as the overall market. However, with that demand comes an increase in prices. In December, for example, the median listing price of tiny homes was $119,000, which is up 19 percent from last year. And Realtor.com also reports that residences under 500 square feet are twice as expensive as other homes nationwide.

In order to keep home prices affordable in the tiny house market, one realtor recommends keeping location in mind.

“A tiny house has such a limited market,” said Sue Goodhart, a real estate agent with The Goodhart Group at McEnearney Associates in Alexandria, Virginia in an interview with CNBC. “If the goal is to save money, I would have to say tiny home investors would need to go to areas where land prices are low, which means now located near major commuter routes.”

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