While we continue to adjust our lifestyles to what is known as the new normal, various new trends have been created since the height of the pandemic. One concept that is gaining traction is known as the tiny house movement. The tiny house movement is the practice of consolidated living techniques beginning with a smaller home. Presently, there is no formal definition for what a tiny house should be, as one could argue the word tiny is relative to the occupants or other living structures. Although the lines are blurry, there is still discussion regarding the acceptable size, which has multiple sources settling within the range between 400 and 600 square feet. To give you an idea, that is roughly the size of an average home's 2 car garage.

Now you may ask, what does this have to do with business or the environment? This answer comes with breaking down the motivation of the movement. Whether it is weighing the positives and negatives in a micro or macro sense, the tiny house movement as a whole is bringing progressive action to a society in need of recognizing its economic and environmental effects. This article aims to explore the rise of consolidated living practice or the tiny house movement, the new markets that have emerged, and the positive environmental outcomes that come along with it. 

“More than half of Americans said they would consider living in a tiny home” says the title of a recent business insider article (Chang 2020). A bold statement to make, but it is backed by data from the Fidelity National Financial Subsidiary (IPX 2020). In a survey conducted by the FNFS, it was found that the median price of an American home is $233,400. In the face of this, reduced costs becomes an obvious benefit of this tiny house movement. A $233,000 traditional American home in comparison to a tiny house where the median price ranges from $30,000 and $60,000 begs for the questions to be asked: “Can I make the adjustment?” (IPX 2020). 

As costs tend to be a deciding factor for individuals, let's dive into why this is so important today. To begin, the housing market is under a great deal of stress. A September 2021 study by researchers at Freddie Mac have determined that the current housing shortage lies close to 3.8 million homes (Khater et. al 2021). This shortage has been attributed to the change in owner preferences from location to style of home, heavily straining a supply chain that was unprepared for pandemic repercussions. Due to this shortage of homes, a new market for affordable, quick, and buyer-specific tiny homes was created. Don’t let the word “tiny” mislead you—the market for tiny homes is expected to grow by $3.33 billion dollars between 2021-2025 (Technavio 2021). As the demand for tiny homes has proven to be rising, so has the supply. While there is limited statistical evidence regarding the amount of companies that create tiny homes, there is reason to believe that the number has only increased in the last year. The list goes on and on, but some of these manufactures include Tiny Heirloom, who build custom luxury tiny houses, Imagine Kit Homes, who build prefab homes for purchase through department stores, and Custom Container Living, who repurpose used shipping containers as homes. These companies differ in the mode by which they produce tiny homes, but nonetheless the more they make, the more actively they are contributing to the housing market and a greener world. 

 Many of the tiny houses are constructed with environmental awareness in mind, with repurposed shipping containers being a prime example. Off the bat, tiny houses are made with a reduced amount of materials from a traditional home. At 400 square feet, a tiny house would use just under ⅙  the amount of building materials of an average 2,301 square foot American home (Statistica 2019). That number shrinks even more when the framework of the house is used from a repurposed shipping container, as less material is needed for a base structure. In addition to the size, many of these tiny houses are built with recycled materials in order to further reduce costs and environmental impacts. 

Along a similar vein, the change in living situation often brings about a drastic change in lifestyle. One researcher found in a survey of participants from all over the United States that those who moved to a tiny house on average reduced their ecological footprint by 45% (Saxton 2019). Ultimately, the tiny home movement is a drastic change from the traditional consumerism normalities that have been instilled in the American lifestyle. More is not always better; the tiny house movement presents a unique opportunity for individuals to express themselves differently while also contributing to a more sustainable society. 

The discussion regarding the tiny house movement has become more established as the full impacts of the lifestyle are coming to bear. There may be hidden costs and intricacies, such as having to purchase land or accepting on average you will be paying more per square foot. Regardless, I think the tiny house movement is still something to consider for those seeking an adventure, more financial freedom, or an environmental quest. (Olick 2021). By doing so, you would be consolidating everyday life clutter, unnecessary housing costs, and contributing to a greener world. This article is not meant to sell you on getting rid of everything you own, moving to the woods, and living solely off the land. Instead, it indicates that the traditional American dream of having a large home and a large number of possessions may actually be changing. Whether that change will stick or not, it is a positive step towards a cleaner world, and upholds the belief that each individual has the opportunity to impact our planet. I challenge you to take a moment and see what you have that you don't need, or what brings you more stress than value in life. I think that is the message behind the tiny house movement and its followers.

References

“Architecturally Designed Kit Homes - Imagine Kit Homes.” n.d. Accessed October 28, 2021. https://imaginekithomes.com.au/.

“Are Tiny Houses Really Better for the Environment?, Study Asks.” n.d. Accessed October 28, 2021. https://www.fastcompany.com/90385816/do-tiny-home-owners-actually-live-more-sustainably-now-we-know.

Chang, Brittany. “More than Half of Americans Said They Would Consider Living in a Tiny Home in a New Survey as the Lifestyle Increases in Popularity amid the Pandemic.” Business Insider, Business Insider, 12 Dec. 2020, https://www.businessinsider.com/survey-reveals-why-tiny-homes-have-become-so-popular-2020-12. 

Housing Supply: A Growing Deficit - Freddie Mac Home. http://www.freddiemac.com/fmac-resources/research/pdf/202105-Note-Housing_Supply-08.pdf. 

“ Median Size of U.S. Single Family House 2000-2019 | Statista.” n.d. Accessed October 28, 2021. https://www.statista.com/statistics/456925/median-size-of-single-family-home-usa/.

Olick, Diana. 2021. “Tiny Homes Can Mean Big Costs, Especially Depending on Where You Live.” CNBC. August 18, 2021. https://www.cnbc.com/2021/08/18/tiny-homes-can-mean-big-costs-especially-depending-on-where-you-live.html.

“Survey Reveals America’s Ideal Tiny Home and Tiny Office.” 2020. IPX1031 (blog). November 18, 2020. https://www.ipx1031.com/america-ideal-tiny-home-tiny-office/.

“Tiny Heirloom | Luxury Custom Tiny Home Builders.” n.d. Accessed October 28, 2021. https://www.tinyheirloom.com/.

“Tiny Homes Market by Product and Geography - Forecast and Analysis 2021-2025.” n.d. Technavio. Accessed October 28, 2021. https://www.technavio.com/report/tiny-homes-market-industry-analysis.