Tiny homes may not be the best investment choice – especially if you plan to move up.
While the size and visual appeal of tiny homes have made them a conversation piece, there’s no indication yet as to how an investment in these homes will pay off in the long term – if at all, says real estate broker Keith Thompson.

“The key word is fad,” says Thompson. “This is a totally unproven market, buoyed by the intense interest in reality TV. Although there can be compelling reasons to want to simplify your life by reducing your financial obligations via less expensive housing options, we don’t know long term how that will play out.”

Even now the tiny home is considered a niche product, with very few buyers available for a wide base of sellers. They also hedge their buyers into living in tiny spaces for the long term, which may not work for buyers looking to move into bigger spaces.

“The average consumer needs more space, bedrooms, and bathrooms than a tiny home can offer. An average home allows buyers to grow into it and keep it long term. A tiny home offers restraints to changes in the lifestyle of the buyer,” real estate broker John Udy says.

Read more >