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Is it Cheaper to Rent or Buy a Tiny Home?

Eden Prairie Tiny Home with Green TrimIf you are trying to determine between renting an Eden Prairie apartment or purchasing a tiny home, probably the first question you may ask is, “Which is cheaper?” The answer to this question depends on different factors, such as the size of the tiny home, the location of the house or apartment, and the cost of living in the location. In this article, we will compare the cost of living in an apartment versus buying a tiny home and help you better understand which way is best for you!

When Size Does Matter

The size of a tiny home is one of the critical aspects that will affect the cost of living in it. Tiny homes are usually much smaller than apartments, so they require less energy to heat and cool. Plus, they commonly feature fewer amenities, such as a washer, dryer, or dishwasher. However, this also means you will have less space for your belongings. Unless you enjoy living minimally, you may need additional storage space, which will be an additional monthly expense. If you have a lot of things or enjoy having space to spread out, then a tiny home may not be the best alternative for you.

Location, Location, Location

The location of an apartment or tiny home is another important aspect to take into account. Apartments in big cities are usually more expensive than those in smaller towns or rural areas. This is because the cost of living in a big city is generally higher. If you are finding an apartment in a major city, be ready to pay more rent than you would if you were looking for an apartment in a small town.

The same thing is true of a tiny home. Depending on where you intend to reside, purchasing even a little lot to build a tiny home could be a big expense – not including the cost of the house itself! Though a tiny home will cost less to buy or build than a larger home, it will still require either large amounts of cash upfront or a loan, which means you’ll be making monthly payments either way.

Cost of Living

The cost of living in an area is also something to consider when selecting whether to rent an apartment or acquire or make a tiny home. Locating land to construct a tiny home could be difficult if you want to live in a city, which usually means looking to the outskirts or rural areas instead. The common cost in a rural area is often less expensive than the typical cost in a big city. This means you will probably save money if you purchase or construct a tiny home in a rural area. On the other side, the cost of living in a rural area may also indicate fewer job opportunities and amenities. You may also need to drive long distances to work, shop, or go to local events, and you will probably need to own a car since public transportation isn’t available in many rural areas.

On the other side, renting an apartment in town could save you substantial cash in travel expenses over the long term, notably if your city includes reliable public transportation. Those savings may balance out the higher rent you pay for a convenient, close-to-everything location.

So, is living in an apartment or a tiny home cheaper? It is based on your situation. You will have to determine what is most important to you and weigh the pros and cons of each option before making a choice.

However, if you are searching for a new place to live, speak to an Eden Prairie property manager at our office. We offer rental homes that may give the ideal combination of size, location, and cost for your needs. You can contact us online or call 612-230-3953.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.