Last November, the National Association of Home Builders reported that the average size of new single-family homes has dropped to 2,276 square feet and is expected to decrease further in 2023, as high interest rates, combined with the high cost of materials and labor shortages, are squeezing American families’ budgets for home purchases.
Moreover, in the post-COVID era, people, especially younger ones, do not want high mortgages or expensive rents. They want to travel, dine at good restaurants, and save for retirement.
As a result, architects and builders are downsizing homes to meet this new demand. This was made very clear during the International Builders’ Show, which took place in Las Vegas last February. Several companies presented solutions for those who want to “live smaller.”
Viken Ohanesian, founder and CEO of BOSS Homes, near Los Angeles, showcased a tiny house model: a 320-square-foot structure with clad walls and a steel roof that can be assembled like Lego blocks in three days. Even equipped with aluminum windows and doors and a mini-split heating and cooling system, the house is sold for just over $56,000, which includes painting.
The most attractive option at the International Builders’ Show was the “Casita,” a 375-square-foot house that could be transported to the site by a Tesla and unfolded like a compact box. Manufactured by Boxabl, a Nevada-based company, the Casita comes with plumbing, electricity, and appliances and costs $60,000. According to David Thompson, the company’s social media manager, 160,000 people are on the waiting list.Home Depot Enters the Real Estate Market
Observing the popularity of this real estate trend, Home Depot, the giant home improvement retailer, designed a new tiny house kit.
The Home Depot PLUS 1 Getaway Pad kit provides the skeleton for a small house or an accessory dwelling unit. The tiny house design consists of just one room and features a spiral staircase leading to an optional rooftop deck.
However, the kit is just the exterior structure. It includes only the steel frame and any necessary parts to complete the assembly. All internal work, including electricity, plumbing, heating and cooling systems, will still need to be completed.
The kit also includes a guide to build the house according to specifications. Home Depot also offers consulting packages to assist with pre-construction issues such as zoning, electricity, water, sewage, and even contractor coordination to help install these services. Prices range from $995 to $3,995. The exterior structure of the house costs less than $50,000.Source: The New York Times and Simple Most