Small Homes vs. Tiny Homes – Key Differences

Housing market analysts worldwide agree that small homes and tiny homes are set to boom in the next few years, as more current and prospective homeowners are drawn towards the minimalist lifestyle. In the US, the trend of building prefab homes has evolved with the growing housing inventory crisis and increasing environmental concerns, such as stronger hurricanes.   Even Elon Musk, owner of Tesla, SpaceX, and now Twitter (maybe?), reportedly lives in a small prefab home. External Link. Opens in new window. when he visits the grounds of SpaceX in Boca Chica, Texas.  While Musk may have his own reasons for living in a small home–including using them as a proof of concept for the dwelling units he wants to build on Mars–there is still plenty of appeal to the small home movement and minimal lifestyle on Earth.  Still, many prospective homebuyers should consider whether they would be better off building a “small home” instead of buying or building a “tiny home.” Yes, the words “tiny” and “small'' have similar meanings, but there are significant differences between small homes and tiny homes.

What are “Tiny” Homes?

Any home that is 400 square feet or less is usually known as a tiny home; most tiny homes sit in the 100-250 sq ft range. Tiny homes can be built from scratch with timber or stick framing, but many are “prefabricated” which means they are built entirely (or in part) in a factory before being delivered to the site where the home will rest. While some tiny homes are built on permanent foundations, most are built on trailers so they can be hitched to a heavy-duty vehicle and easily moved from one location to another. In keeping with the minimal mindset, tiny homes are designed with extremely tight spaces that often require creative storage and furniture solutions to maximize space and livability for residents. Tiny homes will typically range in price from $15k to $60k, depending on the size, materials used, design, and amenities.

What are Some Concerns with Tiny Homes?

Critics of tiny homes point out the hidden price of tiny living that catches so many new homeowners off-guard. Some tiny home dwellers are unprepared for the daily reality of living in such a small space. The most unexpected drawbacks tend to be financial. This is partially due to the assumption that a home that is 1/8th the size of a traditional home will also be 1/8th of the cost of a traditional home. This is not usually the case. Another key component of the fiscal drawbacks is the unpredictability of the tiny home market and how it affects an owner’s ability to “cash out” in the future; some of this may diminish with the rise in popularity of tiny homes that industry experts expect will continue. Until then, because tiny houses are so inexpensive to personalize and built-to-order, resale of a tiny home may be difficult. In fact, most of the benefits of tiny homes include hidden consequences. For example, tiny homes often do not qualify for conventional mortgage loans due to their mobility and small footprint, as well as a lack of standardization in the market and industry.  

What are “Small” Homes?

Size - Since the median size of a single-family home in the United States is around 1,600 square feet, a home that is 900 to 1200 square feet is considered a small home. Overall, small homes are typically larger than 350 sq ft. (Prefab house kits from Mighty Small Homes can be custom designed to be even larger than 1200 square feet if desired).

Construction - Like tiny homes, small homes can be built using traditional stick framing methods, but most small homes are prefabs. Mighty Small Homes, for example, are prefabricated using structural insulated panels. 
 

Foundations - Small homes are built on solid foundations on your own land. They can be built upon various types of poured foundations, including slabs, walkout basements, and crawl spaces. 

  

Floor plans and layouts - Small house kits from Mighty Small Homes come with different size floor plans and a variety of designs as per your choice. Small homes offer enough square footage to accommodate your unique living needs. The size difference allows for features most families find critical – like a spacious bathroom or a fully functional kitchen. These types of quality-of-life features are easy to appreciate once you have been deprived of the space.

Cost - While traditional stick built homes cost anywhere from $150-$250 per square foot, the cost of prefab homes start around $50 per square foot, and can reach $250 per square foot for luxury builds. Depending on the built-in features required, a small prefab home can cost anywhere from $25k to well over $100k.

Advantages of Small Homes vs. Tiny Homes

Both tiny and small homes share the philosophy of sustainability and affordability over traditional homes that are built on-site from scratch, but each comes with trade-offs that may persuade prospective builders to prefer a small home option over a tiny home.

Small Homes are Built on Permanent Foundations

A tiny home is permanently built on a chassis, with wheels attached to the trailer to enhance mobility. This means that the house will always be on the trailer, even if the wheels are removed. Meanwhile, a small home is built off-site from a factory and then transported to the designated location where it is assembled and attached to a foundation.

Small Homes are Typically Safer and More Durable

Prefab homes have always been more durable than traditional homes. In fact, small SIP homes built on foundations are stronger than stick built traditional homes. They hold an edge over traditionally constructed homes because the SIP panel design makes its strength comparable to that of steel I-beams. Tiny homes, on the contrary, are mostly built on trailers, making them extremely dangerous when subjected to severe weather events that could damage or threaten the structural integrity of the home.

Small Homes Allow More Room to Live Comfortably

Small homes can be designed with enough space to achieve minimal lifestyle without sacrificing comfort. There is also a lot of scope for customization to accommodate more living space like a traditional home.  A small home’s size allows for features most families find critical – like a generous bathroom and a fully functional kitchen. Besides built-in plumbing, small homes also allow access to all other amenities of modern living including HVAC systems. These types of quality-of-life features are easy to appreciate once you have been deprived of the space. Tiny homes average 400 square feet with the majority sitting in the 100-250 square feet range, often sacrificing livability conditions to function as a transportable trailer. Even with added cupboards and built-in shelves, tiny homes present storage challenges.  When space becomes tight, a tiny home offers minimal options for upgrading or customization. Sometimes tiny is just too tiny, especially if you have children at home.

Small Homes Still Offer Eco-Friendly Benefits

Much like tiny homes, small homes built with eco-friendly Structural Insulated Panels (SIPs) have a very high energy efficiency. SIP house kits are made with panels that consist of an insulating foam core sandwiched between two structural facing wooden boards.  Building with SIPs delivers long-term value because unlike building traditional homes, there is less waste and a lower carbon footprint due to the prefabrication process. Fabricating SIPs in a controlled environment allows for greater material efficiency, creating less material waste than site-built framing. Overall, SIPs take less energy and raw materials to produce than other structural building systems, making them truly “green”.

Small Homes Require Less Skilled Labor

SIP homes from Mighty Small Homes come in prenumbered panels, along with tools and instructions that make it easy for anyone to build, requiring much less skilled labor than what is required to build traditional stick frame homes. Tiny homes may or may not require skilled craftsmen to finish the project, however it depends on unique features related to portability or design. Tiny homes are often considered a glorified trailer, with or without wheels, and building a home this way does require some skilled labor to get the job done accurately and safely.

Small Homes Can Be Built Quickly

SIP house kits can be designed for a variety of floor plans, yet their simplicity eliminates the need for a long construction phase. Even if you build a SIP home kit with a customized floor plan, the panels offer significant time savings because they have self-contained framing and installation, which cuts out steps in the home building process. SIP homes from Mighty Small Homes can be delivered to construction sites and, within a few days, be “dried in” and under roof. The small home kit package contains numbered, pre-measured, and pre-cut panels, which helps you in building the house much faster. Tiny homes may be built faster, but not by much. Typically, they are constructed completely in the factory before being delivered to the customer. That may have appeal to tiny homeowners, but the time savings is not significant and cannot be attained without high-quality craftsmanship.

Small Homes are Easier to Resell

When shopping for a new house, many prospective homeowners will give serious consideration to purchasing a small home. In fact, it may be their whole objective to downsize–as long as there is ample room to live comfortably. This makes small homes easier to resell, not to mention they come along with the land where the home is placed. However, only a very specific segment of the population wants Tiny homes. Most may not be interested in too much of a cramped lifestyle or an extremely minimal space. Much like selling a used car, tiny homeowners rarely got back what they put into buying it, much less made a profit.  While tiny homes may look affordable to purchase as a new home, the resale value reduces every year with the depreciation value going down much like an automobile or trailer.

Your Best Option Depends on What’s Important to You

Small or tiny homes will appeal to different prospective homebuyers differently, but in general there are far more benefits to building a small home than a tiny one. Understanding the differences is key to ensuring your home buying process does not disappoint you in the end.  Contact Mighty Small Homes to know more about different styles and models of small homes and how it benefits you more than a tiny home.