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Is a tiny house a good fit for your post-work life?
Key points
- One out of three older homeowners spend at least one third of their income on housing.
- Tiny homes cost an average of $45,000, a fraction of the cost of a traditional home.
- Monthly expenses for a tiny home average $600 and 68% of those living in one are mortgage-free.
Congratulations! You have joined the 3 million other workers who have retired this year. One question you may be asking yourself is if you have enough money stashed away to enjoy a comfortable retirement. You are not alone. The median retirement savings for all workers is just $97,000. One survey found that the savings expectations for a comfortable retirement is $1.04 million.
Among older homeowners, about one in three spend at least one third of their income on housing, compared to three out of four older renters. With housing costs taking up a significant chunk of a retiree’s income, should you consider moving into a tiny home in your retirement?
What is a tiny home?
The average size of a traditional home is 2,261 square feet. In comparison, a tiny home is typically 100 to 400 square feet. They rarely go over 500 feet. These tiny dwellings have been getting more and more popular as housing costs in the U.S. rise.
How much do tiny homes cost?
The biggest benefit of a tiny home is the cost savings. The average tiny home costs $45,000, with a typical price ranging from $30,000 to $60,000. This is a fraction of the what the median traditional house costs in the U.S. The cost of a tiny home can be as low as $8,000 and as high as $150,000, depending on the type of amenities you choose.
Why should a retiree move into a tiny home?
Since tiny homes are much smaller than regular homes, monthly expenses (including a mortgage) can be as low as $600. On top of that, 68% of people who live in a tiny home are mortgage-free, and 55% have more savings than the average American. Maintenance and upkeep costs are also lower, as are as utilities and property taxes. Those on a fixed income can benefit financially from living in a tiny home.
Many retirees also have the goal of traveling. Some tiny homes have wheels and are therefore mobile. They give you the freedom and opportunity to move …….
