Tiny houses rock. They provide life-changing financial freedom. Unfortunately, getting that financial freedom is increasingly costly. But why?
In one word: materials
Material costs have skyrocketed due to lumber shortages and general supply chain issues. It doesn't help that labor is harder to come by and more expensive too. Tiny houses have been hit like any other industry.
Instead of rambling on about how it is such a shame--which it is--that tiny houses have become more expensive, let's get right into understanding what exactly you can expect from a cost perspective.
Material Cost
The materials of a tiny house are roughly in these ballparks. I used some basic google searching, reliable tiny house sources, and good old-fashioned estimation to break this down. Don't take it as law and do your research for your specific needs, but know that the ranges here are decently accurate for a typical tiny house made mostly of wood, using new materials. Everything is in US Dollars.
Foundation: $1.5k - $10k
for a Tiny House on Wheels: Trailer: $4000-10000
for a Tiny House on Foundation: Slab of concrete: $1500-3500
Structure: $7.7k - $15.7k
Lumber: $3000-4000
Roofing: $800-1200
Siding: $500-1500
Nails, Screws, etc: $400-1000
Insulation: $500-2500
Windows: $2000-$4000
Doors: $500-1500
Key Systems: $2k - $4.4k
Note: this does not include the labor associated with the installation.
Shower: $300-500
Toilet: $500-1500
Plumbing: $400-700
Electric (does not include solar, which can get very expensive): $400-1000
Electrical Fixtures: $400-700
Interior Finish: $6k - $15k
Interior structures and flooring: $2500-6000
Cabinets: $1000-1500
Finish & Decor: $500-1500
Appliances: $2000-6000
GRAND TOTAL OF MATERIALS: $19.2k - $45.1k
Click here for the breakdown of material cost
Just to reiterate here, this is ONLY the cost of the material.
You will also have to deal with many other costs. While we will cover the cost of things like getting land, permits, and insurance in a separate article, we must work the cost of labor into the build itself as well.
Labor Costs
Chances are, even if you are doing the build on your own, you will still need to hire skilled and/or unskilled labor to help you out.
Even if you are hiring someone to do the build for you, understand that you are still paying for the labor, possibly at a premium.
Here is what you can anticipate...
Electrician: $420 - $1000 ($60-100 per hour)
The cost of an electrician depends on the size of the house and the complexity of the circuits. A smaller and simpler tiny house can be fully wired in less than a day. A larger one may require two days, possibly three. If you're installing solar panels, that is another skilled laborer you will need to hire.
Task | Time | Cost | Can be done without an electrician? |
|---|---|---|---|
Rough-in wiring | 2-4 hours | $120 - $400 | Yes |
Wire the breaker box | ~2 hours | $120 - $100 | Not Recommended |
Finish Work (outlets, switches, etc) | 4-5 hours | $180 - $500 | Not Recommended |
Plumber: $300 - $1500 ($50-150 per hour)
A plumber is avoidable in a tiny house DIY build but will cost a pretty penny if you use one. If you're going through a builder, you are indirectly paying for a plumber. These costs only apply to the water in your tiny house. We will cover costs to get water to and from your house later when breaking down utility setup costs.
Task | Time | Cost | Can be done without a plumber? |
Installing PEX/copper pipes | 2-3 hours | $100 - $450 | Yes |
Installing hot water heater | 2-3 hours | $100 - $450 | Yes |
Hooking up sinks, shower, toilet, etc | 2-4 hours | $100 - $600 | Yes |
Carpenters ($35-90 per hour) & General Labor ($20-40 per hour): $5k - $8k
For those hiring a builder, you need to account for the cost of the labor required to actually build the structure. You may need multiple carpenters involved. Typically, a rough carpenter handles wall framing, while a finish carpenter handles the interior carpentry. For those that are going the steel, container home, or manufactured route, this cost will vary a little bit.
The size and shape of your tiny house, as well as the foundation, make this quite variable.
I spent an extensive amount of time trying to estimate this number and came to the conclusion that the cost is so variable in both rate and time that a carpenter is going to be based upon the quote you receive and/or the builder you use.
But, for the sake of adding it all up, let's do a very rough estimate. The average cost to frame a typical 2000 square foot home is $14,000 to $32,000. If we divide that by 5 (since 400 square feet is one-fifth of 2000 square feet), we would get $3,000 to $6,000 for a tiny house. Let's assume that there is a premium to start the build of about $2,000. That would give us a cost of $5,000 to $8,000 for framing and labor.
Assuming the average carpenter is charging $70/hour and the average generalist is charging $30/hr, and they are splitting the time, we come to a rate of $50/hour.
At $5,000 to $8,000, and a rate of $50/hour, we are looking at about 100-160 people-hours. That sounds about right--or at least good enough for our estimate.
*This is an imperfect calculation, but we're going to go with it.
GRAND TOTAL OF LABOR COSTS: $5.7k - $10.5k
Click here for the breakdown
...and so, without further ado, here is your grand total of all costs to build your tiny house...
Grand Total of Costs: $24.9k - $55.6k
Given the assumptions that we've made above, this is the cost of material and labor you can expect.
Expense Item | Minimum Cost | Maximum Cost |
|---|---|---|
Foundation | $1,500 | $10,000 |
Structure | $7,700 | $15,700 |
Key Systems | $2,000 | $4,400 |
Interior Finish | $6,000 | $15,000 |
Electrician | $420 | $1,000 |
Plumber | $300 | $1,500 |
*Carpenter & General Labor | $5,000 | $8,000 |
GRAND TOTAL | $24,900 | $55,600 |
This is NOT the same as the price. For those that are going through a builder, the builder needs to make money on the project to pay his or her people, rent space, and earn some profit.
Now you know why tiny houses are so expensive!
How do I avoid these costs?
While you cannot change the cost of materials or the cost of labor, you can avoid expense. If you have a super tight budget, check out my other article, How To Get A Tiny House With No Money.
Otherwise, there are two ways to reduce the cost, and both of them involve trading money for time and effort.
Reduce Material Cost
You can reduce the cost of materials by spending a lot of time finding refurbished items. You'll save the most money where there is the most money to be saved. Let's talk through a few of them:
The Trailer: Frankly, don't get a used trailer. It is the literal foundation of a THOW. Your future self can't afford it to be less than optimal.
Windows: This is a fantastic option! New windows cost a fortune, but used windows can provide steep discounts.
Wood: Taking time to find and collect lumber is another way to save on materials. Just be smart about it. You must prioritize structural integrity over savings.
Interior: Everything inside your tiny house can be sourced. From appliances to decor to cabinets to furniture, you can go ultra-cheap if you want. The one exception I'd argue against is getting a used mattress. Sleep well in your new tiny house.
With resourcefulness and patience, you can build a tiny house very cheaply, like this teenager who built a tiny house for less than $10,000.
Reduce Labor Cost
To nobody's surprise, you can reduce labor costs by doing the work yourself.
To do everything yourself, you will be able to reduce labor costs to nearly zero. It is still advisable to hire an electrician to check your work to make sure you did it correctly. This would effectively reduce your labor cost to about $100.
You can also do some of the work yourself, but hire a professional or extra set of hands for other parts. For example, you can build the frame (eliminating a need for a carpenter), rough in the electric but hire an electrician to do the rest (reducing the hours needed for an electrician), and do some of the plumbing yourself (reducing the hours needed for a plumber). You can also simply build the tiny frame and then hire an electrician or plumber to do the rest. Regardless, you will reduce your labor costs significantly.
Now you know what tiny houses really cost. You now understand that materials cost a lot, and labor is no small fee either. The good news is that you can avoid these costs with a bit of effort and time!
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