Global Tiny Homes Market Size to Grow by USD 3.57 Billion | Industry Trends and Forecast to 2026

NEW YORK, May 31, 2022 /PRNewswire/ -- The Tiny Homes Market value is set to grow by USD 3.57 billion, progressing at a CAGR of 4.45% from 2021 to 2026, as per the latest report by Technavio. The market is segmented by product (mobile tiny homes and stationary tiny homes) and geography (North America, Europe, APAC, South America, and Middle East and Africa).

Tiny Homes Market: Segmentation by Product

The tiny homes market share growth by the mobile tiny homes segment will be significant during the forecast period. Mobile tiny homes are critical in the affordable housing market in some countries. The demand for these homes is expected to grow considerably in the next five years with the increase in the cost of conventional houses in most countries. The inability of the youth to afford conventional homes and the need to optimize savings among retired individuals are the main drivers for the demand for mobile tiny homes globally.

Tiny Homes Market: Segmentation by Geography

59% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for tiny homes in North America. Market growth in this region will be faster than the growth of the market in the European, MEA and South American regions. The rise in housing prices and consumer interest in investing in pre-built or custom-built homes will facilitate the tiny homes market growth in North America over the forecast period.

Companies Covered:

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• American Tiny House

• Aussie Tiny Houses

• BAAHOUSE and BAASTUDIO PTY LTD.

• Berkshire Hathaway Inc.

• Cavco Industries Inc.

• Designer ECO Tiny Homes

• Handcrafted Movement

• Heirloom Inc.

• HONOMOBO

• Humble Hand Craft

• ICON Technology Inc.

• La Tiny House

• Meka Inc.

• Mini Mansions Tiny Home Builders LLC

• Molecule Tiny Homes

• Mustard Seed Tiny Homes LLC

• New Frontier Tiny Homes

• Oregon Cottage Co.

• Skyline Champion Corp.

• Tiny Eco Homes UK Ltd.

• Tiny Home Builders

• Tiny SMART House Inc.

• Tumbleweed Tiny House Co.

The tiny homes market is fragmented and the vendors are deploying growth strategies such as pricing and marketing strategies to retain their existing market shares and seize new market opportunities to compete in the market.

The Report also Covers the Following Areas:

• Tiny Homes Market size

• Tiny Homes Market trends

• Tiny Homes Market analysis

Key Market Driver:

One of the key factors driving growth in the tiny homes market is its affordability by the mass section of the population. Tiny homes are recognized as the most affordable housing system, preferred especially by millennials. Tiny homes are just a fraction of the price of traditional homes and can be designed based on customers' requirements. These homes can be purchased at a comparatively lower price than conventional site-built homes. The average price of a tiny home ranges from $10,000 to $30,000. Any price variation can be attributed to factors such as design and structure. The high cost of constructing a conventional home exerts financial strains on the buyer. Hence, the high cost of these conventional homes significantly compels consumers to opt for these tiny homes, thereby acting as a major driver for market growth.

Key Market Challenge:

The limited demand from developing economies will be a major challenge for the tiny homes market during the forecast period. Tiny homes have a high demand in developed economies such as the US, while the adoption and purchase of such homes are limited in developing economies. People in developing countries have limited knowledge and awareness about the availability of such homes and prefer to buy conventional homes. The lack of presence of major vendors, coupled with the low preference of consumers to purchase such homes, acts as a major challenge for the market. Vendors find it difficult to penetrate the developing markets of APAC and Eastern Europe due to the limited knowledge about product offerings and technologies. In APAC, China and Japan have the potential to become prominent markets for such homes, as both these countries have suitable demographics. However, in other developing nations, the lack of well-established infrastructure and limited awareness restrict the growth of the global tiny homes market.

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