What Is a Tiny House? A Comprehensive Overview

A tiny home is a residential dwelling that's typically 400 square feet or less. These homes are often more affordable than local housing stock and offer a much smaller footprint than traditional housing. Tiny homes have been part of the U.S. marketplace for decades (some experts say since the 1800s). However, the movement went mainstream in the '90s and later rose in popularity during the mid-aughts housing crisis and recession. 

Some people appreciate tiny house living for its minimalistic and affordable style. Tiny homes are also built to be eco-friendly with a smaller carbon footprint.

• The average size of a tiny home is 400 square feet or less.
• A tiny house on wheels is smaller, with an average size of 350 square feet.
• The typical height of a tiny house is 13 feet 6 inches.

The International Residential Code (IRC) defines a tiny house as “a dwelling that is 400 square feet or less in floor area excluding lofts.” However, a larger dwelling is possible if your home is built on a foundation versus a tiny house on wheels that’s attached to a trailer. 

If you seek the mobility of a tiny home on wheels, there are specific size restrictions that you must adhere to. In the United States, a typical tiny house on wheels cannot be larger than 40 feet long, 8 feet 6 inches wide, and 13 feet 6 inches tall.

Tiny Home Occupancy

A tiny home will only accommodate so many people comfortably. United Tiny Homes, a build based in Goodyear, Arizona, recommends the following dimensions based on the number of occupants.

There are numerous kinds of tiny houses, including a home on wheels that can travel with its occupant, tiny homes made from shipping containers, modular tiny homes, micro-apartments and even tiny cabins. When you decide to buy a tiny home, consider whether you want it to be mobile or if you plan on purchasing land for your home to sit on. 

Tiny homes take up less space, consume less energy (small appliances are the norm), produce less waste, and use less water than traditional homes. These homes are often built with sustainable materials and solar panels. According to data from Green America, a nonprofit membership organization, tiny home dwellers have an eco-friendly footprint that’s 45% lower than that of traditional homeowners. 

Additionally, the National Association of Realtors (NAR) reports that a tiny home uses roughly 7% of the energy that a traditional house requires. 

“Tiny homes are affordable, with lower insurance, utilities and maintenance costs, forcing you to keep only what you need,” says Erin Hybart, an affordable housing advocate and real estate agent in Louisiana who specializes in tiny homes and accessory dwelling units (ADUs). “Tiny homes are also more versatile than smaller homes and can be used as an ADU, a rental, or to house a loved one. A tiny home will force you to get rid of a lot of baggage in your life.” 

If you buy a tiny home on wheels, it allows you to be nomadic. Tiny home dwellers on wheels can park in mobile home parks or communities designed specifically for tiny houses. Rural areas (great for off-grid living) may be zoned for tiny homes, and you may even be able to park your tiny home on your family and friend’s properties. 

Tiny house communities in rural and urban areas continue to grow across the United States. California, Oregon, Kentucky, Florida and Vermont are among the states with tiny home communities and neighborhoods.

“Millennials and seniors are leading the tiny home trend. Millennials love the affordability and flexibility, while seniors find downsizing ideal for a simpler life or staying close to family,” says Hybart. “Both groups are drawn to the freedom and lifestyle tiny homes offer. Some homeowners are utilizing a tiny house in the backyard as an ADU for rental income.” 

If you decide that the small space of a tiny home is for you, you’ll need to set your budget and research builders who specialize in tiny houses. You’ll also want to determine if your tiny home will be on wheels or a permanent structure; the latter will require research around zoning regulations. Financing can also be a barrier to entry, as many lenders will not approve a traditional mortgage on a tiny house. 

Set your budget. Tiny homes can get expensive, especially when you add high-end finishings, extra storage, and outdoor amenities like decks. The cost of land should also be factored in if your tiny house will be a permanent structure. 

You’ll also need to consider costs for building permits and utility hook-ups​​, if necessary. If you are moving into a tiny home community or RV park, there may also be homeowners association fees and homeowners insurance. 

You can purchase blueprints to build your tiny house or buy a finished one. Jay Shafer, who founded the Tumbleweed Tiny House Company, has been building tiny homes since 1999 and sells four models of certified green tiny houses on wheels. If you prefer a more modern look, some builders, like Backcountry Containers, create tiny homes from shipping containers. 

If you are hiring your builder, it may be worth finding someone with experience constructing tiny homes. You can also buy or rent (if you want to try it out first) a tiny home directly from a tiny homeowner.  

Be sure to research local zoning regulations and building codes before you purchase a tiny home. Some states have specific regulations. For example, in California, a tiny house must have a ceiling height of 7 feet 6 inches or more. Tiny homes in California must also have one room that is at least 120 square feet in size, and additional rooms within the home must be at least 70 square feet. 

“Financing can be a challenge, but new products are coming to market,” Hybart says.  “Traditional mortgages aren’t common for tiny homes, especially mobile ones. Many buyers use personal loans, RV loans, or home equity loans if they already own property. Several lenders are starting to get on board with in-house products to finance the homes.” 

Tiny home builders may offer financing programs, and a few lenders, such as LightStream,  also offer loans for purchasing tiny houses. Still, these are generally more akin to personal loans than mortgages. 

The trend of living small continues to evolve as housing prices rise and sustainable living becomes more important to buyers. Choosing to live in a tiny house is not for everyone. It can be an affordable pathway to homeownership and an eco-friendly way to build on a smaller scale for buyers who want to live with a lighter carbon footprint. If you are considering downsizing to a tiny home, research what it’s like to live in one and talk to tiny house dwellers before committing. 

What defines a tiny house? A tiny house is typically no larger than 400 or 500 square feet and can be on wheels or placed on a piece of land. The International Residential Code (IRC) defines a tiny house as “a dwelling that is 400 square feet or less in floor area excluding lofts.” 

What is the difference between a small home and a tiny home? A small house is less than the median size of a newly built home (2,299 square feet, according to the U.S. Census Bureau) but larger than a tiny house, which is typically 400 square feet on average. 

Is 600 square feet considered a tiny house? While 600 square feet would generally be considered a small footprint for a house, it's also larger than the typical "tiny house." The International Residential Code (IRC) defines a tiny house as a home that's 400 square feet or less, excluding loft space.