How Tiny Houses Work

Costs Associated with Tiny Houses

One of t­he many reasons that people turn to tiny houses is the economic benefits. While some sell for the price of an average car, others can cost more than $600,000 [sources: Johnson] and The Cottage Company]. Location, size and material choice used are major factors in determining the price of tiny houses. Yet, the initial cost of a home is only the start. Taxes can be affected by downsizing to a smaller home. Property taxes are based on the assessed value of the home, so the more expensive your tiny house, the more taxes you'll have to pay [source: U.S. Department of Housing & Urban Development].

Maintenance or upkeep for a home can also have a large bearing on the overall burden of living expenses for a homeowner. Johnson believes that his home's commercial grade materials helped to give him a low maintenance small house.

Along with low maintenance for the actual structure, most tiny houses cut down on the time and energy needed for household chores. Many have smaller yards or no yard at all. This means less time spent cutting the grass or weeding flower beds. Inside the house, for example, scrubbing two or three toilets can take double or triple the time it would take to clean one toilet.

A small house can result in saving both money and time, which the homeowner can then put toward other pursuits. Whether for economic or lifestyle reasons, there are people across the country choosing to live out this movement. Let's take a closer look at the types of people and homes that are making up the small house movement.