MReport January 2022

TheMReport — News and strategies for the evolving mortgage marketplace.

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48 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA The Best Tiny Home Markets in the Nation Demand has accelerated for this unique way of living, as both first-time home buyers and property investors are seeking to take advantage of affordability. T he tiny house market is increasing at a rapid pace and isn't showing any signs of slowing down as the market and desire for tiny living has seen extensive growth in recent years. Tiny Home Builders define the "Tiny House Movement" as an architectural and social movement that encourages living a simpler life in a smaller space relative to three factors: Financial benefits, environmental benefits, and simplification—otherwise known as minimal- ism. Defined by Residential Code, Appendix Q as "a dwelling that is 400 square feet or less in floor area, excluding lofts," structures must have a ceiling height of no less than 6'4" in order to be considered a tiny home. The aver- age height of these dwellings are around 8 feet and can be as small as 80 square feet, whereas the median size of a new single-family home in the United States is 2,301 square feet. Along with individuals seeking the aesthetic trends of tiny living, environmentalists and those entering retirement have also been found to be more interested in tiny houses. Families of two or more have not been seen to have as much desire for tiny living. With the help of social media, the mi- nuscule properties and minimalist dwellers' way of living have amassed much attention. First-time homebuyers and property inves- tors have been attracted to the affordability and flexibility that tiny living provides. Most tiny homes cost between $30,000 to $60,000, while the median price for a starter home is $233,400, according to the National Association of Realtors (NAR). Six key factors were applied and ranked on a 25-point scale to determine the overall best states for tiny homes. Tiny home cost, cost of living, median income, park land coverage, annual average tem- perature, as well as tiny home legality and regula- tions in every state. With all data com- bined, the best states for tiny homes are: • Georgia • Texas • Kansas • Florida • California Rankings include other factors such as average costs to buy a tiny home, cost of living index, food, health, transportation and miscellaneous costs. States with the most expensive tiny homes may be found in hotter climate regions and higher costs of living areas such as: • Hawaii: $93,333 • California: $74,917 • Nevada: $71,963 • Connecticut: $69,500 • Mexico: $66,319 There are other factors to consider in buy- ing a tiny home before the investment is made. Potential buyers should be aware that many states, counties, and cities have different rules, regulations, and zoning requirements, which may prohibit them from building or buying a tiny home. In order to provide an accurate list of the best states for tiny homes, states that have strict laws against building a tiny home or living in a tiny home year-round were excluded, according to

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