Tiny shed homes available at Home Depot are proving popular options for aspiring home owners and landlords in the US. Picture: The Home Depot
Social media platforms have been buzzing in recent months over tiny shed homes that can be purchased at general department stores for a fraction of the price of a brick-and-mortar home.
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These homes are, however, essentially still shells that need certain transformations to make them liveable, but for aspiring home owners, and those who embrace the benefits of the tiny home movement, they are offering great opportunities.
In response to this video, one TikTok user said: “I have one in my backyard and renting for $1 200. One bedroom, kitchen with small island, living room and one bathroom.”
Another said: “I have a tiny home on my property cost me less than $6 000 and is perfect.”
One comment was a little less enthused, however: “This thing could be built for $10 000 less than what they’re selling it for.”
Explaining what else would need to be done, another user stated: “By the time you insulate, put plumbing and electrical, drywall and fixtures, you’re looking at another 25k but still a better deal than anything else.”
Some young couples are even purchasing these homes and erecting them on their parents’ properties, allowing them to save for a brick-and-mortar home one day while still having a space to call their own.
“This is what we are resorting to because the cost of living is so high. The people saying this is a bad idea must be able to afford to live,” said one TikTok user.
The median home price in the United States was $374 900 (R6.4m) as at the second quarter of 2021.
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Erwin Rode of Rode & Associates, says the USA has a tradition of timber houses for the middle class, which presumably makes this kind of inventive design more likely to be acceptable. In South Africa, however, consumers “do not seem to value timber houses because they are associated with inferiority or cheapness – at least, that used to be the general wisdom”.
“After having seen these mini houses of timber, maybe a brave developer aimed at starter families should try this. The crunch will of course be the cost of timber in South Africa, compared with the USA. But if you can deliver a starter house like these at a competitive price compared to brick and mortar, there could be potential. As we all know, the potential at the bottom of the market is huge.”
The StatsSA February 2022 release of residential building plans passed showed a slower year-on-year growth rate in the number of units’ plans passed, says John Loos, property sector strategist at FNB commercial property.
For the three months to February, the data shows that building plans passed for free-standing houses smaller than 80 square metres’ showed the fastest growth. Growth in the affordable housing segment was also better than in the more affluent markets.
TikTok user @i.am.georgee shares some ideas on how homes like this can be used.
Rode says one of the potential price advantages of timber houses like these are that they are presumably industrially manufactured off-site and erected within a day. High construction volumes, therefore, would be the key to financial success, so there would need to be a continual flow in the manufacturing process.
“Hence I propose that a municipality and professional developer should investigate the possibility of creating a large new township using this concept – timber walls with insulation and off-site manufacturing.”
The downside, Rode says, is the regular maintenance required of timber, which could pose a problem for the poor.
“In sum, I think it is worthwhile to investigate this concept.”
Some social media users have also shown interest in these tiny homes for work offices or gaming rooms.
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