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    the tiny home boom after COVID-19

    The Tiny Home Boom After COVID-19

    If you’ve recently, “Are Tiny Houses Still Popular?”, you should know the Global “Tiny Homes Market” Research report released in May 2022 shows an astounding boom in the tiny house market. And market analysts anticipate the trend will continue over several years.

    COVID-19 ushered in numerous shifts in consumer buying, and, of course, B2B buyers who may be your potential customers are meeting changing demands.

    Many building material manufacturers have taken advantage of this market opportunity by developing new products specifically for the tiny home industry. For example, 84 Lumber started selling Tiny Lifestyle kits, which sell phenomenally well. But those who haven’t yet entered the tiny housing market should know there’s much more room for new players and growing companies.

    In this article, we’ll take a look at:

    • The current state of the tiny house market
    • Why tiny house living during the pandemic is a “thing”
    • The top players in the industry
    • And why/how COVID-19 is driving this shift
    • Ways building material manufacturers can stand out in this hot market

    The Current State of the Tiny House Market

    How popular are tiny houses? Let’s take a look. 

    Market analysts anticipate a $3.57 billion increase in the tiny house market size between 2021 and 2026. This represents a CAGR of 4.45% and a 3.88% YoY growth.

    North America is seeing the fastest tiny home growth, with the United States and Canada representing the bulk of purchases. In a report that looked at the shifts across continents, North America represents 59% of the tiny house market.

    The market is fragmented, and analysts expect this tiny house boom to make it more so. As more tiny homes are built and more building materials manufacturers and building companies try to get in on it, businesses will likely specialize and define sub-categories of the industry to differentiate themselves.

    Despite the demand, this differentiation will likely separate the winning marketing strategies that capitalize during this boom and potentially grow if/when the market slows down. Even though many of the drivers may be pandemic related, tiny houses aren’t going anywhere soon.

    What’s the competition look like?

    Beekbergen, Netherlands, June 21 2019: Wooden tiny house under construction. A new form of living philosophy to reduce ecological footprint

    Who Are the Key Players in the Tiny Home Industry?

    Some of the top companies currently in the tiny house industry include:

    • Cavco Industries Inc. Phoenix
    • CMH Services Inc. Mayville, Tenn.
    • Handcrafted Movement – Pacific Northwest
    • Heirloom Inc. San Francisco
    • Humble Hand Craft Ventura, Calif.
    • Oregon Cottage Co.  Eugene, Ore.
    • Skyline Champion Corp. Michigan
    • Tiny Home Builders Williamson, W. Va.
    • Tiny SMART House Inc.  Albany, Ore.
    • Tumbleweed Tiny House Co. – Colorado Springs, Colo.

    You can tell by some of their names that some companies are clearly distinguishing themselves based on the many trends driving the tiny home industry.

    Interior Of Warehouse With Prefabricated Container Houses

    How Is COVID-19 Driving People in the Tiny Home Market?

    Several drivers were prompted or were significantly accelerated by COVID-19. From a marketing perspective, understanding these key factors can undoubtedly influence both messaging and positioning for B2B and B2C businesses in the building and manufacturing industries. 

    Rising Home Prices

    Post-COVID-19 saw traditional housing prices soar as many people realized living in close confines with others during a pandemic encouraged spread of the virus. Others found themselves confined to apartments for months (sometimes longer) with little access to outdoor spaces.

    A tiny home represents freedom and room to live for these people, even if it’s smaller than an apartment. And no, or few neighbors is an added benefit.

    Tiny homes provide a cost-effective alternative to those who seek to escape apartment life. While building a traditional house could cost $200,000 to $300,000 (land not included), a tiny home may cost between $10,000 and $30,000.

    Even though the square footage in tiny homes is much less, typically around 400 square feet. Tiny homes are designed to maximize the use of space within a smaller footprint. And quite often, those purchasing tiny homes spend some of the money they save on more and better outdoor space than they had when living in a more cramped communal, usually urban setting. 

    A Desire for Self-Sufficiency

    COVID-19 also accelerated a pre-COVID trending movement known as homesteading. Bare store shelves renewed the interest of many in reconnecting with the land and having the ability to grow and raise their own food. 

    Environmental Impact on Pandemics

    Harvard researchers, among others, believe as the planet warms, we’ll see more frequent pandemics. This fact has encouraged many who may have previously been on the sidelines environmentally to commit to having a smaller carbon footprint

    Tiny homes are a comfortable and practical way to do that.

    Cost-Efficiency

    Many people saw their savings and businesses wiped out during the pandemic, in addition to the loss of loved ones. Many are looking for a way to live tiny and spend less.

    Adult woman using the oven in her caravan

    Tiny House Living During the Pandemic

    Are tiny houses still popular? The answer is “yes.” Many building supplies and manufacturing companies are getting in on the action. But as the market segments, new market opportunities and differentiating factors will continue to open up for those who know how to position themselves.

    About The Author

    Elton Mayfield

    Elton's career spans media, production, digital and building industry expertise. His diverse experience makes him nimble, innovative, and curious – always pushing the envelope to create extraordinary work that delivers real results for our clients.

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