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What Is the Cost of a Tiny House in Texas?

Updated on:
April 29, 2024
What Is the Cost of a Tiny House in Texas

Image Source: Canva

Everything is bigger in Texas, but one movement is making a statement in the Lone Star State: tiny houses. The more people get into minimalist living and sustainability, the higher the demand for tiny homes across Texas. The reality behind owning a tiny house in Texas is not well understood. We'll have to dive into the nitty-gritty to fathom the dynamics behind the price of a tiny house in Texas.

Average Prices of Smaller Houses in Texas

An average tiny house cost in Texas might run from the mid $100Ks for basic models and go north of $100,000 for luxury turn-key homes. 

A tiny house costs about $400 per square foot of living space, while in a typical house, the cost usually is about $150 per square foot. At the same time, the other factors influencing the price are size, design, amenities, and locality.

Factors that Affect the Price of Tiny Houses in Texas

  • Size and Design: Size for your tiny house and how complex the design will be have a high influence on the general cost. More money is expected to be spent on custom designs and larger sizes. For instance, a simple layout in a 200-square-foot tiny house may cost around $80,000, while a 400-square-foot home with a more complex design may be upwards of $160,000.
  • Amenities: Your tiny home will have expensive modern amenities or eco-friendly features, for example, solar panels or high-end appliances. The addition of a solar power system can be between $5,000 to $15,000, and a composting toilet will set you back $1,000 to $2,000, among other features. As expensive as some of these may be when purchased new, many have the potential to pay back in savings of utility bills and to be eco-friendly.
  • Building Method: Whether you build the tiny house from scratch, go for a pre-built model, or buy a used one, the building method impacts on the final price. Building your own tiny house will probably be the cheapest, with prices in the range from $30,000 to $60,000 for materials. Pre-built models offer convenience but come at a higher cost, typically starting at $50,000 and going up to $100,000 or more.
  • Land prices as well as the laws on zoning in different parts of Texas could change the overall price of a tiny house. Urban places like Austin or Dallas tend to have costlier land and possibly tougher laws. Rural areas do tend to have cheaper land and be less restrictive in their zoning, which is often appealing to most tiny house owners.

Advantages to Invest in Small Homes in Texas

The following are some of the benefits that one gets for investing in a tiny house in Texas, even with a high price per square foot:

  • Lower overall cost: The cost per square foot may be greater, but with overall building expenses so low in comparison to a conventional house, tiny homes are surely cost-effective for many who would like to own a dwelling without breaking the bank.
  • Reduced maintenance and utility expenses: A small-sized tiny house will generally require less maintenance, and its energy-efficient design tends to reduce utility bills. Additionally, the compact space simplifies upkeep, allowing for more efficient use of maid services, which can contribute to significant savings over the long term for a tiny house owner.
  • Increased flexibility in location: Tiny houses can be constructed on wheels, so that owners can move to locations when they need to. This is particularly appealing to people who value travel or sometimes have to relocate because of job demands.
  • Growing demand for tiny homes in the state: As more and more people are becoming conscious and informed about the benefits of tiny living, the demand for such unique homes is continuing to grow in the state of Texas. This growing demand may lead to increased resale value and better investment potential for such houses.

Cities Across Texas That Are Tiny House-Friendly

The tiny house movement has been embraced by a number of cities in the state, allowing their residents to both own and construct the innovative type of living space.

  • Spur: The first tiny house-friendly town in the U.S., Spur is a welcome home to tiny homes. The city now allows tiny houses on any residential lot, having amended its zoning laws, and has thus become the very best friend for those looking for a simpler life.
  • Austin: The city's lively culture and opportunities for active outdoor life draw tiny house fans to this place. Although strictly limited by city zoning laws, there are at least a couple of tiny house communities in the area, such as Village Farm and Community First Village.
  • Breckenridge: Local officials have made some progress by loosening zoning laws for tiny homes. The city now allows tiny houses on wheels to be parked on residential lots. This has provided a little legal ground for the ownership of a tiny house.
  • Fort Worth: The city has embraced the tiny house movement by building a tiny house village for homeless individuals. This groundbreaking project not only gives them roofs but also illustrates a change in attitude that is catching fire across the country.
  • Waco: Home to HGTV's popular show "Fixer Upper," Waco has been the center of attention for many as one of the best places to live in a small home. The city's relaxed zoning laws and land prices place it high on the list for lovers of tiny houses who may want to settle in the state of Texas.

Challenges and Considerations of Living in a Tiny Home in Texas

As the tiny house movement picks up speed in Texas, there is some downside and some things to keep in mind:

  • Zoning Regulations: Not all cities in Texas have welcomed the tiny home movement, so laws can swing relatively wide from one municipality to another. Make sure to research local zoning laws before investing in a tiny house to be in accordance with local laws.
  • Financing Options: Acquiring financing for the tiny house can be a bigger task than a conventional home. Most banks and lenders probably do not offer mortgages to tiny homes; therefore, most owners have to find alternative ways to financing, such as taking personal loans and owner financing.
  • Resale Value: As the tiny home gains more and more popularity, it still is quite a tested resale market. One has to keep in mind the long-term resale value before going for the purchase of a tiny house.
  • Lack of Space: By definition, tiny houses have limited living space. While this may be a plus for many people seeking a minimalist lifestyle, it is definitely not for everyone. Life choices and the necessity to have space should be taken into consideration before falling into a tiny home commitment.


All in all, small houses developed within Texas usually range from the mid $100Ks to over $100,000, with pricing largely dependent on size, design, amenities, building method, and location. 

Even if the price per square foot may be higher than that of a conventional home, the overall costs and the flexibility of tiny living continue to draw many people to the option in Texas. 

The more cities that are opening up to the tiny house movement in this state, the more opportunity grows for people seeking simpler, low-footprint ways of living. 

There are, however, potential downsides to tiny house ownership including: zoning restrictions, financing options, resale values, and tiny living spaces, which are all things to consider before diving headfirst into the world of the tiny house.

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