The global tiny house market size was valued at USD 17.64 Billion in 2022 and is expected to surpass USD 32.43 Billion by 2031, expanding at a CAGR of 7% during the forecast period, 2023–2031. The growth of the market is attributed to the high price of new conventional homes, the popularity of sustainable lifestyles, and the rising preference for an affordable housing system.
Increasing demand for affordable housing systems, primarily designed to accommodate a small family, is expected to boost the market. The tiny house normally occupies 400 square feet or less in floor area, which can be further extended up to 1000 square feet, excluding lofts. Increasing popularity of tiny houses, as they are less expensive to build and maintain and easier to keep clean is expected to drive the market.
Across the world, many people/families live in tiny houses, especially in the U.S. where the cost of real estate is soaring. There are more than 10,000 tiny homes in the U.S. and more than 80% of tiny house owners have comparatively lesser debt than the average U.S. citizen. The ownership of tiny houses is significant among women, approximately 50% of tiny house owners are women in the U.S.
- According to the Fidelity National subsidiary IPX1031, around 56% of Americans say that they would live in a tiny home and 24% said they would not.
Cost-saving is a key factor that drives the demand for the tiny house as it offers certain benefits such as lower maintenance costs, electricity bills, or monthly rental fees. As per several reports, the average price range of a tiny house is between USD 20,000 and USD 50,000 in the US depending upon the size and design structures of a house.
It is mostly preferred by millennials and those groups of people who have middle-class incomes and cannot afford conventional homes. Compared to traditional homes, a tiny house can be available at a relatively lower price and is easily affordable by a large number of people earning an average income.
However, limited space for living rooms and fewer storage areas are some major concerns for consumers before buying or renting a tiny house. The COVID-19 pandemic adversely affected the market, due to the sharp decline in the demand for tiny houses globally. A sudden disruption in the supply chain, impacted by emergency lockdowns across the globe, had delayed the construction of the new tiny house, significantly affecting the market.
Tiny House Market Dynamics
Major Drivers
High cost of new home construction and the availability of easy renting facilities in pre-built or customized homes are key factors driving the market. Tiny houses are often more affordable as compared to traditional homes. They require fewer construction materials, land, and resources. This makes tiny houses attractive for individuals or families looking for affordable housing solutions, especially in areas with high housing costs.
Several families have invested in tiny houses, as they are much cheaper than traditional homes. However, the average price of tiny houses is USD 52,000, which is 87% cheaper than traditional houses.
- According to the Federal Reserve Bank of Dallas, year-over-year rental inflation is expected to increase from around 5.8% in June 2022 to around 8.4% in May 2023.
Rising consumers’ preferences for mass customization and personalization of their homes are projected to propel the market during the forecast period. Tiny houses offer the opportunity for creative design and customization. They can be customized as per individual needs and preferences, allowing for unique and personalized living spaces. This can help individuals to create a home that reflects their personality and lifestyle.
Increasing awareness of sustainable development and the availability of eco-friendly designs of houses present another key driver of the market. Tiny houses have a smaller ecological footprint compared to larger homes, requiring less resources to build and operate. This resonates with individuals who value environmentally friendly living and sustainability.
Existing Challenges
Tiny houses are unsuitable for large families and issues concerning resale problems are major challenges that can hinder the market. If a large family eventually decides to sell their tiny house, they may face challenges finding buyers that are suitable for large families.
It affects the resale value of the tiny house as they are designed for large families. Large families normally have more belongings such as clothes, toys, and other items. The lack of storage can mess up and make it difficult to keep the living space organized and functional, as large families may face challenges in reselling for small families.
Emerging Opportunities
Increasing research & development (R&D) activities to develop 3D printing tiny homes is expected to create lucrative opportunities for the market players. Several companies are experimenting by using 3D printing technology in the construction industry. 3D printing technology is a game changer in the construction industry as it brings architecture to life. For instance,
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COBOD, a world leader in 3D construction printing solutions makes it possible to print with real concrete, increase efficiency, and reduce the man-hours used in construction. Studies have shown that 3D printing uses 70% less concrete as compared to concrete element construction, and CO2 emissions from construction sites can be reduced by around 32% when using 3D printing. By automating processes and building with robots in construction it is also possible to reduce the man-hours by around 50% in the construction.
Scope of Tiny House Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Tiny House Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Mobile Tiny Homes and Stationary Tiny Homes), Application (Commercial, Household, Industrial, and Others), and Channel (Distributor and Direct Sales)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Berkshire Hathaway Inc.; Cavco Industries, Inc.; American Tiny House; Aussie Tiny Houses; The Tiny House; Skyline Champion Corporation; Tiny SMART House, Inc.; eco tiny house; Designer ECO Tiny Homes; HONOMOBO; Humble Hand Craft; ICON Technology, Inc.; Mustard Seed Tiny Homes LLC; New Frontier Design; Oregon Cottage Company; Tumbleweed Tiny House Company; Mini Mansions Tiny Home Builders LLC; and Tiny Home Builders
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Tiny House Market Segment Insights
Type Segment Analysis
Based on type, the global tiny house market is divided into mobile tiny homes and stationary tiny homes. The mobile tiny homes segment is expected to account for a large market share during the forecast period owing to the increasing demand for short-stay homes during holidays and rising expansion in the tourism industry. The availability of a range of mobile tiny homes for consumers’ requirements further boosts the segment.
Mobile tiny houses are often built with a focus on minimalism and simplicity, incorporating clever storage solutions and multifunctional furniture to maximize usable living space. Despite their small footprint, they can still offer basic amenities and features found in traditional homes, such as kitchen, bathroom, sleeping area, and living space.
The stationary tiny homes segment is anticipated to hold a key share of the market in the coming years. Stationary tiny homes are small houses that are built to be permanently located in a fixed location. Stationary tiny homes are not designed to be easily moved or transported. Stationary tiny homes often organize simplicity, minimalism, and sustainability in their design. They typically feature a kitchen, bathroom, sleeping area, living space, and amenities, which depend on the design and consumer preferences.
Application Segment Analysis
In terms of application, the market is segmented into commercial, household, industrial, and others. The household segment is anticipated to hold a key share of the market in the coming years owing to the rising demand for affordable residential apartments due to the rapid increase in the global population.
Moreover, the rising construction of the eco-friendly household system, impacted by the increasing awareness regarding sustainable environment further propels the segment.
Channel Segment Analysis
Based on channel, the tiny house market is bifurcated into distributor and direct sales. The distributor segment is anticipated to expand at a rapid pace during the forecast period owing to the wide establishment of distributor systems, especially in major economies such as the UK, France, the US, and Australia, offering various types of tiny houses for different purposes for consumers.
Regional Analysis
In terms of region, the global tiny house market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held more than 55% of the total market revenue in 2021 and is expected to constitute a key share of the market during the projected period.
The regional market growth is attributed to the high price of conventional residential apartments, the presence of key global players, and the rising demand for personalized homes by millennials in both Canada and the US. For instance,
- On July 11, 2022, Champion Retail Housing, a subsidiary of Skyline Champion, entered into an agreement with Alta Cima Corporation to acquire the Factory Expo Home Center Located at 12 Skyline Champion manufacturing facilities across the United States. Alta Cima provides Skyline Champion with ongoing services in support of the home centers.
Segments
The global tiny house market has been segmented on the basis of
Type
- Mobile Tiny Homes
- Stationary Tiny Homes
Application
- Commercial
- Household
- Industrial
- Others
Channel
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Berkshire Hathaway Inc.
- Cavco Industries, Inc.
- American Tiny House
- Aussie Tiny Houses
- The Tiny House
- Skyline Champion Corporation
- Tiny SMART House, Inc.
- eco tiny house
- Designer ECO Tiny Homes
- HONOMOBO
- Humble Hand Craft
- ICON Technology, Inc.
- Mustard Seed Tiny Homes LLC
- New Frontier Design
- Oregon Cottage Company
- Tumbleweed Tiny House Company
- Mini Mansions Tiny Home Builders LLC
- Tiny Home Builders
Competitive Landscape
Key players competing in the global tiny house market are Berkshire Hathaway Inc.; Cavco Industries, Inc.; American Tiny House; Aussie Tiny Houses; The Tiny House; Skyline Champion Corporation; Tiny SMART House, Inc.; eco tiny house; Designer ECO Tiny Homes; HONOMOBO; Humble Hand Craft; ICON Technology, Inc.; Mustard Seed Tiny Homes LLC; New Frontier Design; Oregon Cottage Company; Tumbleweed Tiny House Company; Mini Mansions Tiny Home Builders LLC; and Tiny Home Builders.
Some of these players have adopted a series of business development strategies including merger and acquisition, entering into partnerships and collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
For instance,
- In February 2023, Sentosa Development Corporation launched low-carbon tiny houses on Lazarus Island for the first time. These tiny homes measures between 170 square feet. Tiny homes are designed in an open-plan concept consisting of a bedroom, kitchenette, living area, and outdoor deck.
- In August 2019, a US-based leading designer of systems-built homes, Cavco Industries, Inc. (Cavco) acquired Destiny Industries, LLC, which offers affordable housing solutions to independent retail distributors in the US. The acquisition was aimed at widening Cavco’s horizon in housing services.
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