While more homeowners have been interested in gaining space during the pandemic, the market for tiny homes is still appealing to certain segments, particularly investors and first-time home buyers.
The affordability of these homes is one of the biggest draws. Many tiny homes cost between $30,000 to $60,000. For comparison, the median price for a starter home is $233,400, according to the National Association of REALTORS®.
IPX1031, a 1031 exchange transaction firm, recently analyzed home listing data to examine the tiny home market by state. Researchers found that Mississippi is the most affordable state to purchase a tiny home ($30,000), followed by Nebraska ($34,000), North Dakota ($34,333), New Hampshire ($34,950), and Kentucky ($35,000).
The states with the priciest tiny homes tend to mostly be located in the West, led by Hawaii ($93,333), California ($74,917), and Nevada ($71,963).
The Tiny Home Market Is Still a Big Draw
IPX1031 researchers identified the best overall states for tiny homes by factoring in the average cost to purchase a tiny home, median income, cost of living index, and livability factors like the average annual temperature and the percentage of state and local park land.
Source: “Best States for Tiny Homes,” IPX1031 Insight Blog (November 2021)
