Global tiny homes market set for big growth

The price of a tiny home comprises only a small fraction of that of a traditional home at $10,000 to $30,000, pushing homebuyers to make the switch in a time of rising mortgage rates and inflation. This trend is most apparent among the youth and retired individuals who have a larger need to optimize savings.

“The high cost of constructing a conventional home exerts financial strains on the buyer,” Technavio said in the report. “Hence, the high cost of these conventional homes significantly compels consumers to opt for these tiny homes, thereby acting as a major driver for market growth.”

More than half of the market growth will originate from North America during the forecast period, with the US and Canada as the key locations for tiny homes.

Read more: US mortgage rates see biggest fall for over two years

Despite the high demand for tiny homes in the US, Technavio found the opposite for developing economies in the APAC and MEA due to the lack of supply and awareness.