Wondering how Tiny Homes Fit Into Your Market?
Tiny homes having been growing in popularity over the last few years, leaving many real estate investors wondering- is this the next best investment? The answer to that question is… maybe. As with any real estate investment it is crucial that you pay attention to your audience. If your niche market is not interested in Tiny Homes, they Tiny Homes will not be a good investment for you.
Our recommendation, rely on market analytics and determine if your community and market is ready for the tiny home craze!
Infographics curtesy of IPX1031 Blog, visit their website here!
The California market is not listed on the top ten most popular states for tiny homes, still interested in investing in a tiny home?
One thing to consider is, who is buying your homes? If you are targeting a market that has a lower budget, Tiny Homes may be the perfect fit. According to market analytics, 79% of home buyers can afford a Tiny Home. However, the profit on a Tiny Home will be lower because the overall price of the home is lower.
Tiny homes are a great way to capture buyers with a smaller budget, and maximize your investment budget.
Not unlike traditional homes, the amenities buyers look for in Tiny Homes are basic convenience necessities. If you invest in a Tiny Home, make sure you include amenities that will appeal to buyers.
The amenities the buyers are looking for are not unlike the amenities traditional home buyers are looking for, the main difference is the smaller scale- which means less expenses for you, the investor!
Interested in targeting first time home buyers? 86% of first time home buyers are interested in purchasing a Tiny Home as their first home. As an investor, it is important to consider where you will build the Tiny Home. If you own land ready to build, a Tiny Home community may be possible!
With 56% of buyers willing to live in a tiny home, now is a great time to get ahead of the demand and invest in tiny homes to build up you portfolio!