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Report Finds 73% of Americans Would Live in a Tiny Home
With high interest rates and limited inventory impacting the recent housing market, the dream of traditional homeownership might feel far away for many Americans. But there is another option, a more compact and budget-friendly path: tiny homes. Tiny homes are defined as homes that fall under a maximum of 500 square feet. To learn more about the shifting landscape of housing preferences and Americans’ interest in tiny homes, we surveyed more than 1,000 Americans about these alternate living spaces.
Tiny Home Trends in America
The American dream might be shifting in size. Our research finds 73% of Americans would consider living in a tiny home. Among the generations, Gen Z and Millennials are most interested in tiny homes with 75% considering living in one.
The top three reasons Americans would live in a tiny home include:
- Affordability
- Minimalist Lifestyle
- Don’t Need a Big Home
Americans aren’t only interested in tiny homes, but also in tiny home communities. More than 3 in 5 (65%) Americans would consider living in a tiny home community. Additionally, 12% already have tiny home communities near where they currently live.
Finances also play a large role in the interest of tiny houses. In fact, 65% of Americans would consider buying a tiny home because of the current housing market, and 86% think tiny homes are a good option for first-time homebuyers. Additionally, data shows 89% find tiny homes more appealing as living options, and 82% view them as attractive investments. More than half (52%) have considered alternative housing options (tiny homes, container homes, van life, etc.) because of high interest rates.
Where are Americans Most Interested in Tiny Homes?
To learn where Americans are most interested in this type of housing, we analyzed Google searches about tiny homes.
The top ten states most interested in living in tiny homes are:
- Vermont
- Wyoming
- Alaska
- Maine
- Montana
- North Dakota
- South Dakota
- New Hampshire
- Arkansas
- Tennessee
Alternative Living Spaces as Rentals
Interest in alternative living spaces is growing among Americans. Alternative living spaces are housing structures that are built or designed outside of the mainstream norm, such as tiny homes, container homes, modular homes, or converted vans.
More than 1 in 10 (11%) Americans plan to buy an alternative living space in the next year and among them, 10% plan to rent the space out.
Nearly 1 in 3 Americans have stayed in an alternative living space rental and 92% enjoyed the stay. The most common types of rentals included tiny homes, modular homes, and vans/RVs.
More than half (54%) of Americans would consider investing in alternative living spaces as rentals. Additionally, statistics show 44% would consider putting an additional dwelling unit (ADU) on their property to generate more income by renting it out and nearly 3 in 4 think local governments should incentivize ADU and tiny home construction to address housing shortages.
When it comes to alternative living space owners, 56% use it as their primary residence, while 41% rent the space out. Among them, 70% own the land the home sits on. The most popular types of homes include tiny homes, vans/RVs, and container homes. The top reasons for owning alternative living spaces include affordability, mobility, and living a minimalist lifestyle.
For more on Tiny Homes, be sure to read How to 1031 Exchange Tiny Homes & Tiny Offices. If you’re planning on buying a home in 2024, learn about how a 1031 Exchange can help preserve your assets when buying and selling investment properties. Investors thinking about converting a primary residence into a rental property can learn more about how a 1031 Exchange can help in that process. Learn more about Investment Property Exchange Services, Inc. (IPX1031), the nation’s largest 1031 Exchange company.
Methodology
In February 2024, we surveyed 1,010 people from around the U.S. Among respondents, 49% identified as male and 49% as female. Respondents aged in range from 18-84 with an average age of 41.
To rank the states and cities, we analyzed more than 1,300 Google search terms relating to tiny homes over the last two years. We took the average number of monthly searches for each state and calculated the searches per 100,000 residents.
For media inquiries, contact media@digitalthirdcoast.net
Fair Use
When using this data and research, please attribute by linking to this study and citing IPX1031.
Read more:
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How to Maximize 1031 Vacation and Rental Property
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Opportunities of the 1031 Exchange
Survey Reveals America’s Ideal Tiny Home and Tiny Office
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How to Buy Your Vacation Home with a 1031 Exchange
Strategically Buying Your Dream Vacation Home with a 1031 Exchange
Where the Vacation Home Market Has Grown the Most
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