How Much Does It Really Cost To Build A Tiny House

Let’s establish one thing first. I don’t like to spend a buck unless necessary. I would not consider myself frugal or frivolous. I am just careful about expenditures and I don’t care to squander money. That said, let’s talk about an oft-argued upon topic in the tiny house universe.


Just this past week I read a gem of a comment in a tiny house group: “The tiny house movement has become another great thing ruined by the capitalist pigs. They sea [sic] the money and they run after it. They don’t care about the same vision Jay Shafer saw a couple of years ago. They just sea [sic] dollar signs. For the cost they want now for a tiny house I might as well just buy a normal home on land.” 

There are just so many things wrong with that statement. Conjuring up the points of capitalism, the erroneous history of Jay Shafer, the cost of building a tiny house, the use of the term “normal”; it was a painful read. I read it anyway. I pondered it. I started to respond a couple of times. Then I digested it, lived with it, and came to the following conclusion. The cost to build a tiny house is relative to the person/party building the home, the level of legality of the house, and the market it is being built in. For the sake of argument, here are a couple of ideas we should use:

  • Average house size in the United States >> 2150 sq.ft.
  • Cost per sq.ft. in today’s real estate market >> $125
  • Cost of said 2150 sq.ft. house >> $268,750
  • A “normal” house >> 1100 sq.ft.
  • A small house >> 600 sq.ft.
  • A tiny house >> less than 400 sq.ft.
  • A micro house >> less than 150 sq.ft.

I saw a quote recently that said, “The small house movement is not about cramming one’s life in the smallest space possible, it is about pursuing a more effective lifestyle through one’s environment in pursuit of a balanced, enjoyable life. It is better living through simplicity.” I love that thought. I have been saying for years that what is tiny to one person may not be tiny to another. What is tiny to 6 people may be huge to 2 people. It is all relative. So to say that a tiny house should not cost more than (random number assignment) $25,000 is absurd. Your version of what a tiny house should cost may not exceed $25,000. Everyone has a different version of what fair pricing is.

While a “normal” house built by licensed contractors is averaged nationally at $125/sq.ft. a 300 sq.ft. tiny house custom built, will run about $300/sq.ft. Now that, my friends, is highway robbery. It is cheap by volume, yes, but expensive by proportions. One of the primary considerations is that when building in small fashion, contractors cannot take advantage of bulk purchasing as they would on a larger house. For instance, the contractor would only need 16 sheets of plywood to dry in the walls of a 24′ tiny house. On a larger house that would only cover perhaps the exterior walls of one room! The price break on plywood at most lumber yards is set at 50 sheets (or a bundle). So a contractor/builder constructing a tiny house doesn’t get to take advantage of bulk rates and therefore has to pay more per sheet.

It is also important to note that a tiny house on wheels begins with a trailer. I have written before about why salvaged trailers are not a smart idea and why you should only build on a properly rated, tiny house specific, metal trailer. At 24ft. long that is going to run about $5300. So even before the first nail is hammered or screw is drilled in, your budget is at a $5k deficit.


The third consideration is that when building a tiny house or having one built you are pitting your own time and experience up against those of a professional and licensed builder. While you may be Bob Vila and know your way around house framing with your eyes closed, you also have to factor in time. How much is your time worth? In order to build a tiny house on wheels are you having to forego steady work and focus only on the construction of the house? Are you having to work full-time and build only in small increments of maybe 3-4 hours per day? As the saying goes, time is money! This doesn’t even get into the efficiency with which a professional builder may be able to add in gratis.

The fourth consideration is how much luxury you want. Take a walk through Lowes or Home Depot or Menards. Everything you see has a price tag. We already established that plywood costs money. Well, so do nails, screw, spools of wire, bats of insulation, sheets of drywall, rolls of tape, etc. Everything has a price and if you want to have a beautiful wooden countertop properly installed and sealed for long-term, it is going to cost slightly more than your average Formica laminate countertop. Same goes with your fridge, your tile work, your mini-split, etc. Most people are left speechless when they find out the average tiny house has 8 electrical outlets at $1.87 each. That is $15 right there. Add an outlet plate cover and you are adding $3. May not sound like a lot but that is essentially the least expensive component to a structure build!

Am I making sense? The argument is not whether a tiny house on wheels is consistent with the micro house Jay Shafer built a decade ago. It isn’t about how it compares to a wholly legal, “normal” house. It isn’t even about how little you could build a tiny house for. The price to build a tiny house on wheels is solely about what you want the house to be and how much that house costs.

What do you think a tiny house on wheels should cost? Have prices gotten out of hand? Should customization even be relevant to the conversation or is this an issue for builders models only? Let us know in the comments below.

By Andrew M. Odom for the [Tiny House Blog]

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David - April 25, 2018 Reply

They why are the “professional” tiny house builders, who crank them out as a sole product in much larger numbers (bulk buyers), still have tiny houses of ridiculous prices? Its not “luxury” because those prices start incredibly high, and then you add on from there.

“Your tiny house starts with a trailer”. Your traditional house starts with a concrete slab, possibly a well and septic, land clearing, building permits, multiple inspections, the price of the land itself (which is not included in the sqft cost of the building).

I agree more with the original person in stating that dollars signs has gotten a hold of the tiny house movement. People who do not understand or support the movement have seen a business opportunity and are here to make money. There’s nothing wrong with that, but most of the tiny houses you see cost as much as a traditional home with land, and that is the truth. The incredible tiny houses you see are more for the kinds of people that buy those very expensive RVs after their retirement. They are not for people who are young and starting out. No, I did not say that there were no people starting out with tiny houses. I said “most”.

How much does my time cost? It costs the same no matter which kind of house I’m builidng

Its a shame when I can buy a much larger traditional home, with land, and live the tiny house lifestyle with empty rooms, or pay just as much to then rent land/space/hookup with a tiny house. I bought 2 acres of fenced farm w/orchard, 3000 sqft of raised beds, with a 2100 sqft mobile, workshop, asphault driveway for $68K.

Right now most tiny houses are ridiculously priced for what they are.

Roofer Weatherford - April 26, 2018 Reply

Tiny houses are mostly a matter of choice for the home owners, some are passionate about living in small and green spaces and there are others who can not afford big places, so a temporary arrangement for them. Whatever may be the reason, this is hear to stay and a blessing for lots of people.

james - April 26, 2018 Reply

The price to build a tiny house on wheels is solely about what you want the house to be and how much that house costs.

Steve - April 27, 2018 Reply

I totally agree with David on the point about those builders who are making a living building tiny houses. That whole “Plywood” argument is bullshit because they can and do buy in bulk but do they pass on the savings? It certainly hasn’t looked that way to this consumer!

Paul McGrath - May 3, 2018 Reply

If you want a Tiny home, You should do some simple building courses at your local TAFE or similar, learn everything you need to build your own Tiny Home. By doing it this way you will learn how to and why to build small, and by you building your own Tiny home, you will save yourselves enough money to furnish and fit out your Home, just the way you like it. (the only thing you will need to get a professional in to do is your Electricity and your Gas Plumbing) so there really is no argument about how much the ‘those builders who are making a living building tiny houses’ charge, as you are the Builder not someone else. I have built 5 Tiny homes myself, and now you need to do also. If you learn then all the maintenance is cheap just you and some cost for materials.

Build yourself your Dream Tiny Home, and
Have a Fantastic life as ‘You only get 1 of them so enjoy.

Kim Kacer - May 4, 2018 Reply

I am curious, what price is fair to put on “tiny home builder’s “expertise” how much and hour is that “worth” if you don’t mind, a “sliding scale” from a “moderately experienced” to a “boss” expert would be helpful.

Then a GUESS per sq foot/per corner might be another helpful thing, or at least hours per – a reasonable cost for an expert vs an expert critique/assistance. Obviously for an experienced builder the time might be an hour, whereas f a person were doing some/most of the work w/ themselves and friends/family…might take 3 or more “(wo)man hours”…

I get the “plus materials, however I plan on gathering most of the materials over time and storing in a secure “outbuilding”, then taking to a builder or having them come by periodically, or being available should I falter somewhere. (They already say this is an option). I’m just looking for a fair price structure so I know how much to save and for that matter, in which direction I want to go. Ecohomes are another potential “route” for me, I think.

ANY of this info would be great, and I get it’s likely mostly “your opinion”

ShiloDogSmith - July 12, 2018 Reply

The main problem that I see with the ‘tiny house boom’ is the shift from 2,150 sf McMansions to 150 sf McMansions. With foundation McMansions, the money is made on the extensive square footage. With the tiny versions, the money is made on all the ‘extras’ that they can cram into it, plus markup for popularity. Have you noticed how ‘overdone’ they are, trying to appeal to the people who want elaborate places? Try to find one that isn’t a ‘two-story’, 13.5 foot tall, 25+ feet long monstrosity. Tiny home builders don’t go for simple, they go for elaborate.

And it appears that many of these tiny homes hit the market again just a year or two after the first buyer? Americans have been psychologically manipulated for some years now to buy-buy-buy, whether they need it or not, or even if they want it or not. They don’t put much thinking into their purchasing. (“We don’t need no stinkin’ thinkin’). Many of them really are stupid enough to shift from a 2,500 sf McMansion to a tiny house just because it’s the New Thing; and then they find they don’t have enough room for all the stuff they keep buying, and they don’t like living that close together. Tiny homes are not for everyone, a fact that seems to be overlooked by many builders AND buyers.


Max - July 13, 2018 Reply

What bothers me most is… most of the designs I see are insanely inefficient. Many of them considerably shrink the internal square footage of useful space while simultaneously adding considerable extra material in the form of walls and windows… just to break up rectangles into more irregular shapes. I suppose the designers think “this makes these small houses look more like price-is-no-object mansions”, but that is not what most “tiny home” or “small home” buyers are looking for. Mostly they are looking for quality, functionality, space/volume efficiency and cost effectiveness.

From my research so far, the way tiny/small home builders design and build is vastly too conventional, grossly inefficient, and not nearly automated enough. I’m half tempted to start a company to “do it right”… but I have other projects I’d rather work on, and better match my various expertises. Given the volume of “homes” is astronomical (almost everyone lives in one, after all), I find it appalling how boring and inefficient the market for tiny/small homes is.

rodentraiser - July 14, 2018 Reply

I was delighted to see the first tiny homes roll out and I was a big fan of them. Then I saw the prices.

In 2003 I bought a new 3 bedroom, 2 bath manufactured home for $22,000. Obviously, I won’t see a new one at that price again, but when I compare that to a tiny home for $60,000, I have to ask myself, “Why would I want something so much smaller for so much more money?”

I think the tiny house movement is really shooting itself in the foot showing all these tiny houses with huge price tags. I appreciate the fact that a lot of people are willing put that kind of money into their tiny homes, but what about those of us who can’t afford or don’t want all the high tech gadgets or the stainless steel appliances or the granite kitchen counter tops? Many of us are unable to build our own houses and are at the mercy of tiny house builders who build for those who are willing and able to plop down $60,000+ for a tiny home.

Put simply, the high prices of tiny houses are alienating a lot of people who would like to buy one.

There is one other thing I’d like to say. If tiny house living is really a lifestyle choice, then why aren’t we seeing more tiny and small homes that AREN’T on trailers? I realize zoning is against the tiny house movement, but more and more, I see zoning laws that don’t allow someone to live (camp) in their RV (read tiny house) for more than 6 months out of the year, either.

Howard Roark - July 31, 2018 Reply

I would amend item 2, such that when designing a small building like this, a good building section can be far more advantageous than a good plan.

my biggest grievance with some of these buildings are their tiny second floors that require you to crawl around like a dog – just build a full height floor!

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