15 Pros And Cons Of Living In A Tiny House To Save Money

Tiny houses are becoming increasingly popular as people look for ways to downsize and save money. But there are some pros and cons to living in a tiny house that you should consider before making the switch.

Consider the pros and cons of tiny houses so you can make an informed decision about whether this is the right choice for you.

Ultimately, only you can decide if downsizing is the right step for your financial future.

A big movement is happening across the country where people are downsizing to tiny houses to save money.

Tiny houses can be anywhere from 100-400 square feet, which is a fraction of the size of the average house. So what are the pros and cons of living in a tiny house? Let’s take a closer look. 

On the one hand, there are many benefits to living in a tiny house. They are typically much cheaper to build and maintain than traditional homes.

They also require less energy to heat and cool, saving you money on utility bills. 

Another benefit of tiny houses is that they simplify your life. You don’t need as much stuff when you live in a tiny house, so it’s easier to keep track of everything and stay organized.

This can be helpful if you’re trying to downsize or declutter your home. 

However, there are also some drawbacks to living in a tiny house. For example, finding somewhere to park your tiny house can be challenging if you don’t have your own land.

And since they often have limited storage space, it can be hard to accommodate your belongings within such a small footprint.”

Pros of a Tiny House

Today’s Appliances are Tiny House Friendly

A tiny house is typically sized about 100 to 400 square feet. But having a small space doesn’t mean that you have to limit your appliances.

Many of today’s big-name appliance manufacturers are coming out with smaller versions of popular appliances to meet the needs of those who want to downsize.

If you are amongst many tiny house dwellers, know that you can still get all your favorite appliances in a smaller size.

This includes major to minor appliances in traditional homes, such as refrigerators, ovens/stoves, microwaves, washers and dryers, and dishwashers.

Cheaper Cost of Living Compared to Big Houses

Tiny house living might be a good idea if you want to get out of your current large home and start from scratch because it will cost you much less.

This can be a great way to save, especially for people that do not need much space.

From utility bills to common grocery store necessities to property taxes and personal loans to pay for the house, everything will cost less when you switch to tiny living.

House and a Camper All-in-One

Just like recreational vehicles or a mobile tiny house, having a smaller house on wheels (mobile home) allows you to take your home with you on vacation.

This is a great way to live a nomadic lifestyle and travel as much as you want without worrying about finding a place to stay or paying for lodging every time you stop somewhere new.

RV parks, truck stops, and even public campgrounds typically have hookups for water and electricity, which makes it easy to keep your tiny home on wheels running while you’re on the road.

Lower Monthly Mortgages and Maintenance

Higher interest rates from a larger house can be a burden, especially if you’re on a tight budget. A mortgage for a tiny house is significantly lower than a traditional home, making it easier on your wallet.

You’ll also save money because you won’t have to pay nearly as much monthly maintenance costs.

Everything from painting the exterior and fixing the roof to dealing with plumbing and electrical issues will cost less simply because there’s less surface area to take care of.

Downsizing is Good for the Environment

Do you care about your carbon footprint and environmental footprint? If so, opting for a smaller living space is a great way to lower your impact.

A tiny house requires far less energy and resources to build and maintain than a traditional home, which means that it’s more eco-friendly. In fact, according to a Virginia Tech Study, those who live in a tiny house produce about 45% less trash than the average American.

So, if you’re looking for ways to be more sustainable, this is one option worth considering.

Less Space, Less Time to Clean

Another advantage for tiny home enthusiasts is that you have less clutter and cleaning to keep up with.

Unlike larger homes, where you need to constantly mop, vacuum, and dust, a small house can be cleaned in just a few minutes.

This can be great if you have a busy lifestyle or don’t enjoy housework.

You still have much free time to pursue your hobbies, travel, work, or relax without feeling like you’re constantly playing catch-up on cleaning.

Energy-Efficient

A typical house uses about 10,632 kilowatt hours of electricity per year, while a tiny home uses only about 800.

This means you are roughly using 30 kilowatt hours per day. Compared to a small home that uses 4 to 8 kilowatt hours per day or a large one that can use up to 15, tiny homes can be more energy efficient than the average house.

Can Easily Go to Solar

Solar panels are one of the popular sustainable energy sources for the tiny house community. Whether you live in a mobile tiny house or a stationary one, solar panels can be easily added to the roof.

This is a great way to reduce your reliance on the grid and produce your own renewable energy. According to Solar Reviews, tiny house owners can save between $250 to $750 annually on their electric bill by going solar.

That means even having a huge upfront cost of solar power installation, you still save money in the long run.

Cons of a Tiny House

Resale Value

If you want a tiny life and opt for a mobile house as your permanent home, then it might be a good choice to live in tiny home villages where you can have your own home with land.

However, if you plan on eventually selling your tiny house, finding a buyer willing to pay what the home is worth could be more difficult.

This is especially true for those who live in areas where there aren’t many people interested in this lifestyle change.

Tiny house prices tend to depreciate more compared to traditional homes. Doing upgrades can help increase its value, but most of the time, it’s not enough to cover or at least get your investment back.

Storage Challenge

If you are a single person living in a 400-square-foot home, you might not have any problem with the storage. But if you are planning on starting a family or have one already, it can be challenging to keep up with the stuff.

There will come a time when your storage space will be fully maximized, and you’ll need to get creative with your storage solutions.

You might need to use under-the-bed storage, have a Murphy bed or lofted sleeping area, or add shelves and cabinets to make the most of your space.

Composting Toilets

Plumbing is unnecessary and often absent in a tiny home as tiny home builders try to save as much space as possible.

This means you will need to use a composting toilet. This can be a bit of an adjustment for some people, but it’s not as bad as it sounds.

Composting toilets work by separating solid and liquid waste, with the solid waste being turned into compost. The process is similar to traditional flush but can create a foul odor when used incorrectly.

If you are not careful with your waste, it can attract bugs and rodents. This is important for keeping the area clean and dry and avoiding unwanted pests.

Susceptible to Extreme Weather Conditions

Compared to traditional homes, the tiny house movement is a new concept, which means there is still a lot to be improved upon.

One of the dangers of tiny homes is that they are more susceptible to extreme weather conditions. Because they are small, they can easily be toppled over by strong winds or damaged by heavy rains or snow.

Factors such as the location of your house and the weather conditions in your area should be considered before deciding to go tiny.

Cooking Can Be Difficult

While this is not a big concern, you should also consider that cooking can be more difficult in a tiny house.

Because of the limited space, you might not be able to have all the kitchen appliances that you are used to.

Oftentimes, appliances you are to get are half the size you would find in a regular home. This can make cooking more of a challenge as you might not be able to do everything you normally do.

Mobile House Needs a Truck

Towing a tiny house on a trailer will require a truck that can haul it. This means that you will need to have a truck that is big enough and has the right kind of hitch to be able to do this.

If you don’t have a truck, you will need to get one or find someone to help you move your tiny house. Now, this is not the ideal case for those who want to go tiny.

You want the freedom to move your house whenever you want, but if you don’t have the right kind of vehicle, that might not be possible.

Investing a decent amount of money in a truck might not be what you had in mind when you decided to go tiny, but with its importance for tiny living, you might have to consider this option.

Limited Space For Entertaining Guests

You may have friends, co-workers, or family members who want to come over and visit your new place. But the problem is that there is only so much space in a tiny house for entertaining guests.

This can be an issue if you like to have people over often or if you have a lot of friends.

Though you can equip your house with multi-functional furniture that can be used to entertain guests, the limited space might not accommodate everyone.

Final Thoughts

So, is living in a tiny house the right choice for you? It depends on your personal circumstances and what you hope to gain from downsizing.

If you’re looking to save money, reduce your environmental impact, or simplify your life, a tiny house could be a great option.

But if you need more space or crave the amenities of traditional housing, then a tiny house may not be right for you.

Ultimately, only you can decide if downsizing to a tiny house is the best decision for your unique situation.