Building A Tiny House In 5 Steps

Moving into a tiny house can not only cut down on your residential square feet, but it can also afford you more freedom and be more affordable than bigger houses. If you’re looking to build a tiny home, there are certain factors you should consider first. The building process itself will involve a lot of planning and forethought as well.

Let’s walk through the process of building a tiny house from start to finish, and all of the decisions you’ll have to make along the way.

Should You Build A Tiny House?

Buying a house is a huge financial investment, so it’s no wonder that tiny homes – with their smaller price tags – are becoming more popular. Tiny homes are one of many different house styles homeowners are considering to save money. If you’re looking at downsizing your living space and perhaps lowering your cost of living, then it might make sense to make the tiny house move.

Before you make any permanent decisions, though, it’s important to answer the following questions.

DIY Or Hire A Professional?

If you’re handy and an experienced builder, you could save yourself labor costs by building your tiny house yourself. Still, even experienced DIYers shouldn’t go it alone. Reach out to practiced or expert friends or family members for assistance and expertise, and turn to professionals for more complex jobs like plumbing, electrical, HVAC systems, etc.

How Much Does It Cost To Build A Tiny House?

The cost to build a tiny house averages around $30,000 – $60,000, maybe more or less depending on what amenities you wish to include. Compared to how much it costs to build a more traditional house ($116,836 – $498,767) you could be saving yourself close to $100,000 in building costs.

Building your tiny house is undoubtedly cheaper than buying one prebuilt, and there are several routes you can take if you decide to build it yourself. If starting from scratch isn’t for you, there are tiny house shells, which provide a finished exterior with an unfinished interior that allows you to still personalize the space for your needs.

Another option is a kit home. These typically cost less than $10,000 and come with blueprints, a customized trailer to build on and a list of needed supplies. You can even look into building a shipping container home.

How To Build A Tiny Home

Whether you’re performing a DIY build or working with a contractor, follow this step-by-step guide for a successful tiny house build.

1. Decide Where To Build Your Tiny House

Most tiny houses fall within the range of 100 – 400 square feet. How and where you construct a tiny home will affect your building options, wallet and lifestyle in a big way.

Keep the following at the forefront of your mind when taking this first step in your tiny house build.

Tiny Home On Wheels Or Land?

Begin by deciding if you want the house on a foundation or on a trailer.

Permanent foundations like concrete slabs give you more control of the floor plan. You aren’t limited to the dimensions of a trailer, and you can add features like a crawl space. An advantage of building on a trailer, though, is mobility. You also won’t be subject to building codes in most areas if you build on a trailer.

However, the unit could potentially take on RV status and make it subject to RV regulations, and therefore be limited to RV hookups for utilities.

Zoning

Many states don’t have zoning specifically for tiny homes. Check with your city or county to be sure you aren’t violating any zoning laws by having a tiny home on a site. For example, it’s illegal in many areas to place your tiny house on a friend’s or family member’s land for free.

Some zoning laws also have minimum square footage requirements on the parcel. Other areas may have covenants limiting the length of time an RV can remain on a site. If your tiny house is built on a foundation and meets the minimum square footage requirements in your area, it may be legally considered an accessory dwelling unit or ADU.

Building Codes

While zoning regulations impact where you can build these unique houses, building codes impact how your tiny house is built. Building codes are primarily in place to protect public health and safety. Both zoning and building regulations vary between locations, so it’s crucial to check the guidelines in your area before planning your project. You can typically find this information online by visiting your state’s website.

2. Set A Budget To Build A Tiny House

As we said earlier, building a tiny house can cost $30,000 – $60,000 on average. In most cases, the average cost per square foot is more (and often much more) than that of a traditional home. The nationwide average cost of a tiny home is $300 per square foot compared to a traditional home’s $150 per square foot.

However, this doesn’t account for the fact that traditional homes typically cost more to finance and maintain. In the end, you can own a tiny home flat-out for the cost of a down payment on a traditional house. But many financial factors go into building a tiny home that could balloon your price or give you an opportunity to cut costs.

Cost Of Land

If you’re building on a foundation, you’ll likely be required to buy land, but you can manage this higher upfront cost through applicable financing options. Building on a foundation may also require specific local permits, so it’s important to check with the local building department. Building permits run homeowners $460 – $2,773 on average, adding to your home building costs.

Buying Construction Materials

Tiny home builders have a large array of building materials to choose from, some cheaper than others. Which materials you choose will often make the biggest difference in the overall cost of your tiny house project. Research different foundation materials and types of flooring, siding, framing, sheathing, roofing and more.

A metal roof is recommended over shingles to handle wind but could cost up to three or four times more for installation. Let’s say you build on a foundation in the countryside and forgo the power grid. You’d need an off-grid alternative, and solar panels – a popular choice – can tack on $8,000 to your bottom line.

Also consider what types of utilities and household systems you’ll require, especially whether your location mandates a sewer hookup, well water or septic system. Don’t forget about insulation, too. Vapor barriers are highly recommended.

3. Finance Your Tiny House Build

Now that you have your budget ready, it’s time to finance your build. Depending on your needs, there are several different routes you can take to obtain financing, from financing through a tiny home builder to getting an RV loan – as well as land loans for foundation building.

If you’re building your tiny home, construction loans may be a good option since these short-term loans function very similarly to mortgages but cover the cost of custom home building.

If you’re looking to add an ADU to an existing property, a home equity loan or cash-out refinance could help you access equity and free up funds for your project.

4. Prepare To Downsize

An exciting component of moving to a tiny house is the opportunity for downsizing. Since space is more limited in a tiny house, it’s wise to think creatively about storage and features. But first, evaluate what’s in your current home and the features of the home itself. What must you bring with you and have in your new tiny home? What can you live without? Chances are, you’ll need to make some tough decisions and fashion your space around the essentials in your new life.

Creative ways to save on space in a tiny home include sleeping in a loft space above the rest of the home or in a hideaway bed if you use a loft for storage. You can also furnish your tiny house with multifunctional furniture, like couches that become shelves and window blinds that turn into racks. Maybe add a small shed to the back end of the unit or make use of space under a floating floor or bench seat.

5. Start Building Your Tiny House

Once you’ve completed all your preplanning, chosen your design, set your budget and secured financing, it’s finally time to build your new home. Purchase your building materials, set the framing and begin installing siding, roofing, etc.

Once the tiny house itself is built, you can then fill it with furniture, appliances and amenities to truly make it a home. Continue to personalize your new home with your favorite decor styles.

How To Build A Tiny House On Wheels

Building a tiny house on wheels, or a trailer, follows much the same steps as building on a foundation, but the differences aren’t just in potential costs.

For one, you’ll need to buy a trailer if you don’t already own one you want to build on. You can save both time and money if you buy a trailer that already has undercarriage flashing and square fenders. Before you start building, you should also ensure the trailer is level before installing any insulation or the subfloor. Add any required anchors ahead of time. Every build is different so be sure to consult the appropriate experts for your tiny home build.

The Bottom Line

When building a tiny home, it’s important to trust the process. It may take a bit of time, but the end result will be a new home that reflects you and your personal tastes. It’s easy to become consumed with financing a tiny house build or finding the right tiny house design aspects to incorporate, but when you see the finished product, it’ll hopefully all be worth it.

Looking to add a tiny home to your property? Apply today for a cash-out refinance and take advantage of your home’s equity.