Tiny Homes Are Hot, and They’re Going Upscale
Life + Money

Tiny Homes Are Hot, and They’re Going Upscale

The average size of new homes grew to a whopping 2,700 square feet last year, but not everyone agrees that bigger is better.

There’s a growing movement for micro-homes, small properties known as “tiny houses” measuring just a few hundred square feet or less (the average is just 186 square feet). Tiny house owners trade high housing costs and plentiful possessions for the simplicity and savings of living in a small space.

Slideshow: 10 Tiny but Luxurious Homes

The trend has recently garnered national attention, with televisions shows like Tiny House Nation and Tiny House Hunters, which chronicle the lives of tiny house buyers and occupants. The houses are appealing to both Baby Boomers looking to downsize -- about 40 percent of tiny house buyers are over age 50 – and to millennials struggling to afford traditional-size homes and attracted to the small carbon footprint of the eco-friendly structures. Nearly 70 percent of those who live in tiny houses, which cost an average of just $23,000, have no mortgage, according to TinyHouseLife.com.

Developers like the properties because they’re relatively quick and easy to build, and you can pack more of them onto less land. However, they have run into zoning problems in some communities.

Don’t let the small stature of such houses fool you into thinking they lack for amenities, though. Builders are creating customized spaces, tricked out with smart home features and high-end design features like recessed lighting and granite countertops. Of course, the more luxurious the home, the higher the price tag, but compared to full-size luxury homes, these properties are still a bargain.

Click here to see check out some amazingly tiny, but luxurious homes.