How Much Does a Tiny House Cost to Build?

One of the most common questions asked in the tiny house industry is “How much does a tiny house cost?” Although there is no simple answer, we will give you the best estimates and guidelines to help you plan for your tiny living experience. Here are the three ways of constructing your tiny home and the cost associated with each.

DIY to Keep Your Tiny House Cost Low

One of the biggest appeals to DIY is the ability to save money. That holds true in the tiny house world as well with saving money one of the most prominent reasons people choose self-construction. This is obviously the cheapest tiny house cost because you are taking on all of the labor. For the sake of this comparison, we are going to use the 20’ tiny home as our baseline. This size is typically the most popular but keep in mind that the price does not go up or down like in a conventional house.

In a normal home, if you jump your square footage up by 50 percent, more than likely you are adding additional bathrooms, and larger rooms throughout the home. In a tiny home, you may be adding a bit more of living space, but you aren’t adding additional appliances, bathrooms, etc. So when you are planning out your space or figuring out your replacement value, keep this in mind.

You can expect to pay between $15,000 and $20,000 for a 20’ tiny house for the materials, but you have to keep in mind that your time is not free. Not that you are going to pay yourself, but how much is your time truly worth? A great way to figure this out is to ask yourself questions like, “How much money do I have to get paid per hour to not feel bad about spending less time with my kids or my wife?” “How much would you pay someone to do your normal job so that you could take a vacation?” Questions like this will help you put a true value on your time. Rationalize it out however you want, but your value of time cannot be zero.

Have Someone Build a Shell

Weather is an ever-present factor in building your tiny home and until you are dried-in (everything on the outside is finished), Mother Nature will be your biggest worry both time and money wise. In the beginning, if you don’t have the time to build or if you are particularly slow, then having someone build a shell could be for you.

Sometimes people are more comfortable with someone else making sure the house is structurally sound, so they let the professionals handle the exterior and more. The benefit of working from the shell inward is that it still allows you to get your hands dirty and feet wet, but the big parts are done for you. This also allows you to add your own personal touch.

It is important to know that all shells are not created equal. Some are finished just to the dried-in spot, some have the entire exterior completed and some even have the rough in for plumbing and electrical completed. So make sure you are comparing apples to apples when you are choosing your builder.

Depending on the completeness of the house, your costs are roughly $15,000 to $23,000 for a shell but be careful when choosing because things like windows are some of your highest costs. See a rough estimate of tiny house costs here.

Contract a Tiny Home Builder to do the Whole Thing

This option is not too varied from building a foundation-based large home. This is for the person who has more money than time, or who doesn’t have the desire or ability to learn the skills necessary to build their new home. Your home comes to you move in ready. If you are looking for financing for your new home, this may be a better choice as lending institutions are keener on giving out money to professional builders over DIYers. Expect to pay in the neighborhood of $45,000 and up. If you would like to get upgraded amenities and appliances, trim packages, and materials you can certainly spend considerably more.

Going Green Costs More Green

Another big motivator to make people want to go tiny is the ability to go green at the same time. Please do not confuse being Earth friendly with being wallet friendly. Eco-friendly insulation typically costs more and takes longer to source. Solar panels can be costly and having your house wired for DC or buying a inverter is an additional expense. Re-purposed materials do not usually come ready to use. Boards normally have nails to pull, stain and paint to strip and may even need to be planed to lose the warping.

So what are you planning to spend on your tiny house? Or if you own one, did you come in under or over budget? Let me know in the comments below.

8 thoughts on “How Much Does a Tiny House Cost to Build?

  1. Naa said:

    Good article, thank you! One thing I’d like to add about the value of one’s time. I see it in a different way because if a person is able to make that his/her hobby, then there’s no need to have that mindset. I don’t know too many people who want to get paid when they go out to the movies, go golfing, cayaking, working on their old car for fun, hiking, fishing, boating, attend a concert, or any other thing outside of work that tends to take up our time. We do these things because we enjoy them – even when they take time away from family when we don’t include them. When I finally build my home, it will be something I consider my hobby and I will enjoy working on something that will eventually become my home. Not to mention there will always be parts than can be turned into a family activity (get the kids or spouse to measure things, hand tools, help decorate or hammer something, teach them how to build). My thoughts are that when something is important to me, it no longer becomes about money lost but the value in the things that I do and the things I create. And that, to me, is priceless.

    • Tom Bastek said:

      You do say it right, if you love your job, you never work a day in your life. Good luck with your build!

  2. Ben said:

    You can also combine family time with DIY if you do it right and that puts a different twist on the value of time.

  3. Peter Huggler said:

    With our trailer, materials, and appliances, our total costs are running closer to $30k and we’re doing mid grade products, nothing high end.

    • Peter Huggler said:

      And it’s a 20’ building

  4. Dawson Waugh said:

    We built on a 32 foot gooseneck platform. The (brand new triple axle) trailer + walls, floors, and the roof (all 3 already insulated with conduit holes and window and door cut outs) was roughly $23,000.

    After the ikea kitchen, mini split AC, composting toilet, 11cu in fridge, ikea full size bed frame, and other appliances.. and a TON of wood for siding, floors, and interior walls. We are around $45,000.

  5. Pat Lemonde said:

    Has anyone had issues insuring your tiny home. I heard that can be an issue!
    Thank you

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