Last Updated: Nov 16, 2020
It used to be a staple of our culture that every young and ambitious family would take on a 30-year mortgage to finance a couple of hundred-thousand-dollar home. This long-term financial commitment was seen as a symbol of prosperity and a solid investment.
More and more young people, and people of all ages, however, are beginning to question that need for 3,000 square feet of space. After close to a decade from the mortgage crisis of 2008, the home loan default rates are still not at pre-2008 levels, with default rates at just under 5%. This shows that there is still a substantial amount of financial insecurity associated with taking on the traditional, long-term mortgage for a large home in the suburbs.
From the tiny house movement to learning how to build your own home, thousands of people are looking for alternatives to become homeowners without taking on a sizeable amount of debt.
Because of the streamlined production and manufacturing process, prefab homes are generally much less expensive than a house built on-site. They also use much fewer construction materials and generate much less waste. While many prefab homes can cost upwards of half a million dollars, there are several prefab tiny homes on the market. These offer comfort and class without forcing you into long-term debt that will keep you in a job to be able to pay your mortgage.
Below, we look at five of the top tiny prefab homes that cost well under $75,000.
At 448 square feet, 84 Lumber's Heart's Content prefab tiny home offers affordability and comfort with cottage charm. This tiny home includes one bedroom, a full-size bath, 8-foot ceilings, and a front porch. While this prefab does not include a foundation, plumbing and water fixtures, or HVAC, the starting price of $21,750 provides a lot of wiggle room. 84 Lumber does offer upgrade packages for the exterior, interior, as well as kitchen and bath, customized to your needs.
If you are on a tight budget for a new home, but still want to have plenty of luxuries, the K6 by KitHAUS is a quality tiny home that is a greater starter home for individuals or couples. At between 240 and 330 square feet, you won´t have a lot of room, but the well-designed kitchenette and bathroom along with the added-on deck will give you all the comfort you need. The large glass walls will let in tremendous amounts of light and the insulated panel construction allows for great energy efficiency.
For many people, the idea of taking on any type of debt might seem like a financial risk. If you have $10,000 dollars saved up, you can purchase a unique, cabin from Arched Cabins. These homes are sold as DIY kits that can be shipped anywhere in the country. Despite their small size, these homes are incredibly durable and can withstand high winds and huge amounts of snow.
For young people who are mobile and not tied to any one, specific community, the idea of purchasing a home might seem like an illogical investment. However, just because you move every couple of months doesn’t mean that renting is your only option. The Monarch Tiny Home on Wheels is a unique, prefab home option that will allow you to own a home that you can take with you on your travels. The 20-foot long and 8.5 feet wide home they offer starts at only $20,000 dollars if you agree to do the interior finishing work. If you want a completed home, the move-in ready style will cost you $47,000.
Inexpensive prefab homes can also be extremely eco-friendly as well. Green Magic Homes designs prefab homes that come with a built-in green, living roof to give these homes a “hobbit-like” feel to them. You can choose from either do-it-yourself kits are fully assembled homes. Certain kits start at just over $40 dollars per square foot for the shell design allowing you to easily design a home for well under $75,000 dollars.
Having five bedrooms and three baths for a family of two doesn’t make much sense. The financial commitment of purchasing a $400,000 dollar home will lock you into a monthly payment that will last until you are close to retirement age. If this doesn’t seem like the best option for you, several tiny, prefab homes offer comfort and style. Any of the five prefab homes reviewed above can get you a comfortable home that you might be able to purchase outright.
Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.