While downsizing into a smaller home in retirement is viewed as a solution to high housing costs, living on a fixed income, and the burden of maintenance upkeep, some retirees are taking the concept one step further by moving into extremely tiny homes.
Tiny houses use less energy because there isn’t as much space to heat or cool.
“You're cutting down on mortgage or rent, utilities, and maintenance,” LBC Mortgage founder and CEO Alex Shekhtman told NTD. “Plus, tiny homes force you to live with intention. There’s no room for stuff you don’t need, and that can be incredibly freeing for someone entering retirement.”
The 2017 movie “Downsizing,” starring Hollywood movie star Matt Damon, popularized the tiny house movement with a science fiction plot and comedic concepts like shrinking physically in order to take up less space on the planet and living with less in a dollhouse.
“Tiny homes lets people live in an area without compromising their location at times because the cost of the home and the tiny lot take up less space,” Echo Fine Properties broker and CEO Jeff Lichtenstein.
“Most people buy them with cash, thus avoiding loans and financial worries,” Florida realtor and Lexawise.com founder Alexei Morgado told NTD. “Many tiny houses have good insulation and features of a traditional home.”
Tiny home retirement communities are thriving in North Carolina, Arizona, Florida, Oregon, and Utah, according to Morgado.
“Texas is the state with the most legal options for tiny house living,” Morgado added. “Florida, especially in areas such as Ocala, Brooksville, and the interior of the state, is also growing rapidly in communities designed for seniors looking for this alternative.”
One of the downsides is zoning law restrictions.
“Local zoning laws or restrictions can make things more complicated than people expect,” Shekhtman added. “That’s the part people don’t always talk about.”
Another downside is Home Owners Association (HOA) fees.
"A lot of these communities do charge fees similar to HOAs for shared services, maintenance, and access to communal areas," Shekhtman added. "It varies, but it’s something worth checking before committing."