The real estate market is not like it used to be. While demand for houses is still high even during the pandemic, the economy and behavior of Millennials today have changed the way homes are being sold. The budget for new homes has lowered, and younger generations are more meticulous about their choices.
Now the question on people’s minds is whether buying homes is still an option or is the market in jeopardy. Fortunately for the real estate industry, there is still a great demand for this, but they must note that people’s wants and needs have changed considerably.
Rise of tiny homes
Buying a large home has become a far-fetched dream for Millennials and younger generations. The economy and the amount of debt people have made it near impossible. Similarly, a lot of people today are not interested in having kids, so the idea of having multiple bedrooms that won’t be used is just impractical. For this reason, the concept of a tiny home started.
Surveys found that 86 percent of Americans consider getting a tiny home as their first home. Not only is it significantly more affordable, but it is also more eco-friendly. This fits well with the growing concern for the environment. Smaller houses logically consume less energy for insulation. ;
The simplicity and minimalist approach to design has also made tiny homes so favorably. Every space and construction is made with purpose, and a lot of layouts were made with efficiency in mind. Besides that, interior designers have also made a unique approach to minimalist homes wherein every space is maximized and fit to use the least amount of space possible.
From buses to homes
A creative new idea that people have tried doing is repurposing vehicles into tiny homes. People have been buying RVs and buses to transform into their mobile home. This new bus-turned-home is called skoolies.
What makes this so popular is both the low cost and the nontraditional way of living. Many people today love the idea of traveling, and what better way for them to achieve this than having a home on the road? One of the reasons people do this is because they want to reconnect with nature and the environment. Those that own these kinds of homes also have unique jobs that don’t require long hours on a desk.
Buying a used bus is surprisingly cheap, and the process of converting it is even cheaper. A 72-seater that is 34 feet long costs roughly $3,000 with the right dealer. There are also auctions where you can buy them for lower the cost. Many of these buses are also in mint condition, with only a few miles in. Buses are cheaper than RVs, so this is the more common option.
When it comes to repurposing it, you can actually hire a custom house builder who can build your skoolie. Compared to the number of individuals you need to hire to build a home from scratch, they are quite affordable. There’s also the option of DIYing your new home. A partially converted bus can cost roughly $10,000, which seems a lot but is nothing compared to the thousands spent on real homes.
Will tiny homes replace large homes?
Although the trend of smaller spaces is growing, this doesn’t necessarily mean that everyone will downsize. It might be a viable option as one’s first home, but many people often don’t stick to the first home they buy. Even the generation struggling the most is still considering selling their homes for something better.
However, 72 percent would consider a tiny home as an investment. Aside from being someone’s personal home, these tiny houses can be rented out to travelers on a budget. Like Airbnb, tiny homes have just enough space for short-term living while also being a cheaper alternative to hotels.
A bigger issue that the market needs to face is financing issues. Whether large or small, there is still the question of whether the economy would permit individuals to afford homes. Solutions to mortgage payments are still not readily available.
These issues are things that the housing industry must consider when trying to sell homes to future generations. As it stands, the rise of tiny homes is largely caused by a lack of resources. However, if changes in people’s spending ability were to improve in the future, then this trend may fade into the background of real estate history.