Many of us want a home, whether a large spacious one or an average-size one of 1,800 sq. ft. or a medium size of 2,273 sq. ft. as was the case in 2021, according to Realtor.com But what was affordable and reasonably priced years ago is now beyond the reach of a majority of purchasers, due to higher interest rates and prices as well as the continued increases in monthly costs.
In a June 6th article in Yahoo Finance, there were only four U.S. cities where it was more economical to buy than to rent, which were Detroit, Philadelphia, Cleveland, and Houston. More than 50% of the homes in those specific markets were more affordable to buy than to rent. I have said in a previous column that New York State as well as well as other states are losing their young populations and families. Not much has been accomplished in alleviating and solving this issue to keep them in place.
I have seen a trend that has been developing, however, over the last number of years throughout the U.S. It is a based on low-priced, tiny houses and has been gaining huge popularity. The trend is designed to maximize functionality and minimize space requirements, offering a minimalist and sustainable living solution.
Tiny houses have gained traction in recent years due to their affordability, mobility, and eco-friendly nature. They can range from 100 to as much as 500 sq. ft. They generally can have the amenities that a much larger home would have, just downsized. This trend started to increase during the implosion of the market back in 2007-2008 as people were losing their jobs and their homes were foreclosed on.
The affordable alternative to a traditional home was a tiny house. They were cost-efficient, low carbon footprint and the savings on utilities were dramatic. This enabled many to simplify their lives, even going as far as living off the grid and downsizing, leading to a less stressful, minimalist lifestyle. Prices can range from as little as $15,000 for the smallest house, if you’re salvaging materials and your DIY skills come into play, up to $100,000, for a home that has most of the extras.
Tumbleweed Tiny House Company is the nation’s leading builder of tiny houses. The cost is extremely low and doable for most, compared to a typical contractor-built, median-sized home of 2,383 sq. ft, where the median price was $383,500 in 2022.
There are so many Gen Z members and others with student loans that must be paid back starting in October. Assuming the borrower is gainfully exployed and has good credit and , a tiny house could be the answer to becoming a homeowner. Once constructed, a tiny house can be placed on a trailer and brought to any location where the zoning permits these types of homes.
As so many people leave larger, more costly cities, especially in New York State, this could potentially ease the exodus of those who would consider ownership of a tiny house. Possible changes in zoning within certain locations, allowing sub-dividing a typical lot that would allow a tiny house, would help in easing the current housing crisis.
Sufficient research in finding the land to place the tiny house will be necessary. Going out into Suffolk County or Upstate New York should enable you to find available land. However, if you are just one or two people, this can work well. But if you have a larger family, a tiny house most likely will not provide the required space. The word is sacrifice in what you are willing to do to determine whether this will properly work for you.
If and when Gov. Kathy Hochul has a plan put into effect to offer low-cost housing that will be available for rent or sale, it still might be a more expensive way to go. It is obvious that you will need to be a minimalist when downsizing to a tiny house. This effectively will eliminate all your current clutter and allow you to live a more carefree, affordable lifestyle.
Your real estate taxes should be considerably lower, too, based on the value of both house and land. You will also have to search for a mortgage broker and/or lender that will allow financing for your tiny house (we can assist you in your search). Pursuing this path could help in building your wealth as opposed to continuing to rent.
You must determine all your monthly costs in renting compared to purchasing a tiny house. Not everyone will want to adapt to this type of living environment, but renting is a guarantee that will only decrease your wealth monthly while you are handing it over to your landlord as well as all the other benefits that he/she is gaining.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com or via https://WWW.Li-RealEstate.Com  Just email or snail mail (regular mail) him with your ideas or suggestions on future columns with your name, email and cell number and he will call or email you back.
