The Tiny house Blog

How Much Does It Cost to Build a Tiny Home

Updated on:
July 27, 2023
building a tiny house

Living in a small house has become a fashionable choice against the norm of expansive homes. It offers people the chance to simplify their life, often leading to a way of living that's easier on the wallet and kinder to our planet. A unique aspect of tiny house living is the relative affordability. With proper planning and budgeting, individuals can potentially finance their own tiny home with a $20,000 loan online, even with bad credit.

Tiny houses come in a variety of shapes and styles, including stationary and mobile options. They can be constructed on a foundation like a traditional home or built on trailers for easy relocation. From sleek, modern designs to rustic cabins, tiny houses can be customized to suit the tastes and needs of their owners.

escher tiny house
View Escher by New Frontier Design

Factors Influencing the Cost of a Tiny House

  • The price of a tiny house is significantly determined by its size. A larger tiny house demands more materials and labor, making it more expensive than its smaller counterparts.
  • A simple design will be less expensive than a complex one boasting intricate architectural elements. Additionally, choices around the internal layout and facilities like kitchen size, bathroom design, loft area, etc., can impact the price.
  • The cost is heavily dependent on the quality and nature of the materials used. Using salvaged materials can cut costs, whereas luxury, custom-made, or specifically obtained materials can add to the price.
  • If you're constructing the house yourself, you'll avoid labor costs. However, hiring professionals or purchasing a pre-constructed tiny house means labor can form a substantial part of the price.
  • Depending on the design of your tiny house, utility costs such as plumbing, electricity, and temperature control systems may need to be considered.
  • Tiny houses designed to be mobile and built on trailers often come with additional costs. These can relate to the trailer itself, towing gear, and design aspects that ensure the house can endure travel and varying weather conditions.

How Much Does It Cost to Build a Tiny Home?

Professional vs. DIY: Cost Comparisons in Building Tiny Homes

DIY Tiny House Costs

Choosing to build your tiny house yourself is a budget-friendly option since you cut out the expense of labor, which often represents a considerable slice of the total cost. The average DIY tiny house project may run anywhere from $10,000 to $30,000, depending on variables such as the size, design, and the type of materials chosen.


DIY construction allows you to save money, retain complete control over design choices and material selection, and experience the rewarding process of crafting your own living space.


This approach demands a significant investment of time and effort and a certain skill level in construction. Mistakes made during the building process could lead to unforeseen costs later.

Professional Tiny House Costs

If you decide to hire a professional builder for your tiny house, the cost will likely be higher, but it can spare you a great deal of time and the risk of expensive errors. The price range for professionally built tiny homes generally falls between $30,000 and $80,000. For luxury, bespoke tiny houses, the cost can soar up to $150,000.


Hiring professionals provides access to construction expertise, guarantees adherence to safety standards, and is less time-consuming for you. Builders often have the ability to source materials at reduced prices due to bulk buying, and they may also offer pre-designed layouts that can simplify the planning phase.


Opting for professional builders means higher costs and less influence over every detail of your home, unless you are prepared to invest in a custom design.

the mountain xl tiny house
View The Mountain XL by Comak Tiny Homes

Customization and Its Impact on Tiny House Prices

When it comes to tiny houses, customization can significantly impact the final cost. Here's how various customization aspects might affect your tiny house budget:

  1. Appliances

If you choose high-end, energy-efficient, or specially-sized appliances to fit into your tiny house, this could increase your budget.

  1. Systems

Upgrading systems like plumbing, electrical, heating, and cooling can be costly. Opting for solar panels, a composting toilet, or a mini-split HVAC system are great for functionality and sustainability, but will impact the final cost.

  1. Interior Finishing

Custom cabinets, built-in furniture, decorative lighting fixtures, and high-end finishes can add a personal touch to your tiny home but will also add to the overall cost.

  1. Exterior Upgrades

Additions like a deck, porch, or landscaping also count as customizations that can increase the cost of your tiny house project.

In conclusion, while customization can increase the overall cost of your tiny house, it also adds value by tailoring the space to your specific lifestyle and preferences. 

Additional Costs: Land, Permits, and Utilities

Here's a table that outlines the additional costs you might encounter when building or buying a tiny house:

The True Cost of Tiny House Living

The true cost of tiny house living isn't just about the price tag of the house itself or the upfront costs associated with land, permits, and utilities. It also includes ongoing costs such as insurance, maintenance, and the potential for renovations or additions.

On the other hand, it's also essential to consider the savings associated with tiny house living. These can include lower utility costs, decreased spending on material possessions due to limited space, and the potential to own your home outright sooner, thereby eliminating mortgage payments.

Is a Tiny House Worth It?

The decision on whether a tiny house is worth it is highly personal and depends on individual lifestyle preferences, financial circumstances, and long-term goals. If you value a minimalist lifestyle, lower ongoing living expenses, and the flexibility that a smaller, potentially mobile home can offer, a tiny house could be a perfect choice for you.

Besides, a tiny house could double as an investment property. Once it's ready, it could be rented out, generating a steady stream of additional income. If you envision an early retirement, the financial savings from residing in a tiny house could accelerate your journey toward your financial milestones. The potential perks are indeed numerous, but they demand thoughtful planning and grounded expectations. Thus, in evaluating if a tiny house is a worthy investment, reflect on both your current preferences and your future objectives.

Did you enjoy this post and find value in it? Share it with your friends with the links below!

Need more info? Get

By submitting your email, you agree to our Privacy Policy and Terms

Subscribe to get the latest news

This is a new way to communicate faster than any communication platforms

Thank you!
Your submission has been received! Check your inbox for an email from with more info!
Oops! Something went wrong while submitting the form. Please try again or email us at Thanks!
Want all the latest tiny house inspo and news?

Get free resources, updates, tips & tricks, and special offers by joining the Tiny House Plan Newsletter.

No items found.

Frequently Asked Questions

Find answers — straight from the author — for the most common questions about this article.

Don't see your question here? Contact us!
No items found.

Join The Tiny House Community

Occasionally: Community Events, DIY Tips and Tricks, Tiny House Guides
Never: Junk or Spam and we don't sell or misuse your email.
Welcome to the fam! We're excited to have you join the community.
Oops! Something went wrong while submitting the form. Please try again or use the form below.