Tiny Prefabricated Homes - How Do Prices Compare?

Are you drawn to the minimalist movement and dreaming of a cozy and sleek sanctuary in the shape of a tiny house? A tiny prefabricated house is much more than a small house, it guarantees reduced monthly mortgage payments and electricity bills. However, getting as much information regarding purchase-related costs and tiny house financing options is paramount. So, how much does a tiny house actually cost?

What Factors Affect the Overall Cost of a Tiny Prefabricated House?

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Factors Inherent to the Tiny House

1- Design size and complexity

• Small and simple: A very tiny house with a minimalist floor design will typically be less expensive than a bigger and more complex structure. Draw inspiration from our minimalist style guide.

• Several stories or mezzanine: Building several stories or a loft-like second storey increases the square footage and, as a result, the total cost.

2- Building materials

• Budget-friendly materials: Using materials like wood, plywood, and vinyl cuts down on building material costs.

• High-end materials: Materials like stone, hardwood, and stainless steel significantly drive up costs.

3- Degree of finish and craftsmanship

• Basic finishes: Vinyl flooring, laminate countertops, and budget-friendly appliances keep costs low.

• High-end finishes: Hardwood flooring, granite countertops, and high-end appliances drive up costs.

4- Additional features and options

• Pitched roof: A classic sloped roof is cheaper than a flat roof or a green roof.

• Solar panels: Installing solar panels to benefit from renewable energy makes for a costly add-on.

• Plumbing system: A plumbing system complete with a toilet, shower, and sink is more expensive than a dry toilet system.

Beyond the Price of a Tiny House

1- Type of tiny house

• Fixed tiny home: Inquire about the cost of such a design. If you want to set up shop in an ecovillage, the price of the plot of land may include access to a communal septic tank and access to some relaxation areas and community centres.

• Tiny home on wheels: You can lease a plot of land instead of purchasing one. While you may be significantly cutting costs by leasing, bear in mind that you’ll have to budget for transportation costs to hire a company specializing in moving tiny homes. 

• Tiny house trailer: Since a tiny house trailer is much more modest in size, it can be moved without having to hire the services of a specialized company. However, if you plan on relocating several times a year, buying a truck is inevitable.

2- Access to essential services

Water, electricity, and sewer connection fees can be relatively high. Depending on the location of your land parcel, you may also benefit from municipality-offered public services. Installing a well and septic tank might be paramount.

3- Tiny home-friendly appliances and furnishings

Building custom furniture could be inevitable for some especially small surface areas. Next, don’t overlook the fact that purchasing unconventionally-sized appliances can be more expensive than standard models.

4- Paving and landscaping

While most prospective homeowners don’t automatically think about these aspects when considering building a tiny prefab home, note that paving and landscaping can drive up overall costs more than one might think.

Note that some companies specializing in building tiny houses offer turnkey solutions, and said services are included in the asking price.

5- Site location

Building a fixed mini home on a site will substantially impact the cost of the structure itself, much like it would with a traditional house. Some neighbourhoods in and around metropolitan areas can be quite expensive, hence the importance of cost consideration in terms of land when putting together a budget.

In a nutshell, the cost of a tiny house can vary significantly based on choices and personal circumstances. It’s essential to budget accordingly and consider all potential costs prior to jumping into such a project. Working closely with tiny house construction professionals is highly recommended to get accurate project quotes, allowing you to plan accordingly thereafter.

How Much Does a Tiny House Cost in Canada?

Photo: Wikimedia Commons

The cost of a tiny house can vary considerably, ranging from $14,000 for a basic, pre-engineered model to several hundreds of thousands of dollars for an elaborate build, and these price points don’t include land. 

But, on average, a tiny house costs between $60,000 and $150,000, including building and hired labour costs.

Who Manufactures or Sells Tiny Houses?

There are quite a few tiny house manufacturers, each of which sells a range of models, suited to different lifestyles, budgets, and needs. Here’s a look at the most sought-after options in Canada:

1. Maison Bonneville (pre-engineered homes)

Maison Bonneville is a leader in manufacturing high-end tiny houses. Its residences are built with comfort, durability, and aesthetics in mind. Prices start at around $200,000, which includes top-quality finishes, eco-friendly materials, and custom options. These houses are made for those looking for a turnkey, move-in-ready product.

2. Amazon

Amazon sells more cost-effective options, such as tiny prefab houses starting at $20,000. However, these kits solely include the structure itself. Additional fees for foundation, interior finishes, insulation, public utilities, and installation must be considered. These tiny houses are perfect for those looking to undertake a DIY project or as a cottage or backyard casita. 

3. Home Depot

Home Depot retails “tiny home offices” starting at $34,000. These structures are often prefab and designed as offices or temporary workspaces, instead of serving as permanent housing. While they can be used as housing, they do need important add-ons to comply with living standards, such as insulation and electrical hookups.

When selecting a manufacturer, it’s important to consider not only upfront costs but also additional fees, such as installation, hookups, interior fittings, and permits.

Tiny House, Big Savings - How to Scale Down Your Budget

• Opt for a prefab or simply designed tiny house.

• Use budget-friendly building materials.

• Take on some DIY projects.

• Consider alternative water, energy, and waste options.

You can materialize your dream tiny house without draining your savings by making smart choices and meticulously planning the layout to optimize the available square footage.

How to Fund Your Tiny Prefab House Purchase

While a tiny prefabricated house is still a house in the truest sense of the word, its financing options unveil several hurdles that aren’t met with traditional homes. Since buying a tiny house is typically cheaper than that of a conventional home, banks are generally more hesitant to approve mortgage loans. This is all the more true for tiny houses on wheels that are unnaturally small.

Ideally, one would pay for their tiny house in full using their savings. But, since not everyone has a solid nest egg to do so, you may need to consider getting a line of credit to finance your purchase.

As you may know, the interest rate tied to a line of credit is much higher than that of a mortgage loan. Note, however, that by negotiating with your financial institution, you can lower the interest rate tied to your line of credit to roughly 3–6%, provided you have a good credit history.

If a line of credit isn’t a viable option, you can always apply for a personal loan. However, for such a loan, interest rates are higher (between 7–12%) and have one caveat: they’re not as flexible in terms of setting repayment terms and conditions.

Understanding the Costs of Building a Tiny House

It’s essential to consider the factors listed in this article to assess the total cost and determine whether such an investment suits your needs and budget. Design options—custom features, building quality, and energy efficiency—will greatly affect the total price. Also, working with tiny house construction experts is highly recommended to get accurate quotes and plan your project accordingly. By understanding the cost-determining factors, you can then make a well-informed decision and materialize your dream, in line with your lifestyle and financial means.

Want to learn more about tiny houses? Check out our article: Expectations vs. Reality: Living in a Tiny House.

FAQ Tiny Prefab House

Which Canadian cities allow tiny houses?

The regulations and requirements regarding tiny houses may vary from one city to the next. As such, it’s crucial to check with local authorities to get your hands on specific information. You can also get a map detailing the areas suited for tiny houses.

For more information about this type of dwelling, check out our article Building a Tiny House: Permits and Municipal Regulations.