In case you haven't noticed, the tiny house movement has exploded in recent years. In fact, it's projected to expand at a CAGR of 8.43% during the forecast period, reaching USD 30018.52 million by 2028.

Naturally, that rapid industry growth has been accompanied by a parallel expansion of online media content showing people building tiny homes, living the tiny home lifestyle, etc. But is everything you're seeing representative of reality? Or is the actual truth of what it takes to live tiny hidden behind the facade?

Well - it's a little bit of both; in this article, I will tell you all the things you weren't supposed to know 🤫. We will also explore the not-so-tiny truths behind the tiny house movement and what it actually takes to become a member of it.

From the financial perks of selling a larger home before getting started to the creative solution of living in an unfinished space while you work on the project, we're diving deep into what it actually takes to make this minimalist dream a reality.

Whether you're a seasoned tiny house enthusiast or just curious about swapping your living room for a 'living nook,' buckle up! You're about to discover that the best things in life don't require a three-car garage (but that if you had a house with a three-car garage with equity that you were able to sell... that might not be a bad starting point!).

1. They Have Equity From Selling A Home

People who build tiny houses or choose to live remotely often have a significant financial advantage that is not always immediately apparent. Many of the people building tiny homes have sold their previous homes worth several hundred thousand dollars and had tens of thousands of dollars in equity (or more). This financial cushion enabled them to build their dream homes and lead the kind of lifestyle they desired.

This isn't always disclosed, which I completely understand. Creating public content around transitioning from a several thousand square foot home to a tiny home is one thing... That's quite the accomplishment that people want to hear about. But telling people about your finances is another story that not everybody is comfortable sharing.

2. They Have Previously Mastered Skill Sets

Having built a tiny house ourselves, we quickly realized that if you need to hire someone else to do the work, plumbing, and electricity are the two most expensive aspects of building a tiny house.

Some people you see in videos online building tiny houses (especially the more luxurious ones) have high-paying jobs with six-figure salaries, while others possess specialized skills in various construction fields, such as carpentry, plumbing, and electrical work. In fact, if time is not an issue, you may want to take some specific trade classes before embarking on your tiny house build (or maybe even while you're in the process of building) so that you can save some money along the way.

A Tiny Tip: Halfway through our tiny house project, we discovered that some stores like Home Depot and Lowe's offer in-store training classes to learn about laying tile, basic carpentry classes, and more. Installing a backsplash in the kitchen or a tub surround can cost well over $1,000 in some areas, so consider learning how to do some of those things yourself.

3. They Have Friends Who Have Skill Sets

Even if the person building the tiny house does not have any particular set of trade skills, they often know someone who does and is willing to lend a hand. If that's you, then you are way ahead of the rest of us who lack those skills. Your tiny house project will be significantly less expensive as a result.

In this particular scenario of tiny house building, your wealth is measured not in dollars but in your circle of talented friends. It's not what you know but who you know and what they can do that turns your tiny dream home into an affordable reality.

4. They Have Remote Work Jobs

The rise of remote work jobs has been a game-changer for many tiny house enthusiasts. The remote work trend allows individuals to live anywhere, even in remote locations, without being tied to a job in a specific city. For tiny house people, this flexibility means they can be present while overseeing the construction of their tiny house or even building it themselves.

If you have a job that allows remote work, your tiny house dream becomes more feasible. You can earn a stable income while living in your tiny home - even living on-site while building it.

5. They Earn a Living From YouTube

Another common theme amongst those in the tiny house movement (and in many other industries) is that they actually built their online media channel around tiny house content. And building a tiny house (or their 2nd, 3rd of 4th) is just part of their content creation process because that's how they make money. And a lot of them make a LOT of money from their content.

If you're like us, we thoroughly enjoy watching people on YouTube who live alternative lifestyles. But - as an example - pay close attention to people who run YouTube/TikTok accounts whose videos are all about renovations. Have you noticed that they NEVER stop renovating their home? That there's always SOMETHING that needs to be renovated next? That's because if they stop creating content that caters to their audience, their revenue also stops.

So, don't become disillusioned by all of the people you see online showing the incredible projects, tiny homes, renovations, etc., they're working on. For many of them... that's literally their job.

A Tiny Tip: In fact, many people start YouTube channels specifically to document their tiny home projects, and it ends up becoming their primary source of revenue, so... there's an idea ;) Just remember, once you start - it may be difficult to stop.

6. They Live Onsite While Building

A lot of people who have built tiny homes are free-spirited and adventurous. They choose to live inside their unfinished creation while working on it, saving money by not paying rent or a mortgage elsewhere and putting more resources into their tiny house project.

A Tiny Tip: If your resources are limited, and you're able to do the same thing, it might be worth considering. Just ensure it won't land you in any legal hot water in your area since some cities and counties have laws about living in an unfinished structure.

7. It's Their Secondary Home (ADU)

Some people don't disclose that the tiny house they're building isn't their primary residence but rather an Accessory Dwelling Unit (ADU) on their property.

This setup offers additional flexibility, such as a space for guests, a rental opportunity, or a cozy retreat. If they have enough space on their property, constructing a tiny house as an ADU can be a smart investment, providing them with additional living space without the need to purchase new land.

Acquiring land that allows tiny homes to be built on it is arguably one of the most challenging aspects of transitioning to a tiny home lifestyle (and most expensive).

Already owning land (and, in many cases, a house), while building a tiny home is quite the advantage. They live there and work on their tiny home project in the backyard. It's an even more significant advantage if they also work remotely while doing so.

8. They're Building On Family Property

One of the most common ways that people you see on social media building tiny houses are able to reduce costs for their tiny home build is by building on family-owned property. This approach can significantly cut down on expenses, particularly the cost of land, which is a major hurdle in many housing projects.

A Tiny Tip: If you have family members who own land and are willing to let you build your tiny house there (even just short-term), it can be an excellent way to achieve your dream while keeping costs low.

9. They Received Family Financing

Even if family land is not involved, sometimes, the financial support needed to build a tiny house comes from family. This is another advantage that's not typically disclosed on YouTube channels when people share their tiny home projects. Whether it's a loan, a gift, or an investment, family financing is generally a much more accessible and flexible option compared to traditional bank loans - especially since not all financial institutions offer lending for tiny house projects, to begin with.

Don't Be Discouraged

I'm not telling you all of this to discourage you. Quite the opposite, actually. I've seen many people go into their tiny house project with false expectations and inadequately prepared for the challenges they may face; financially or otherwise. As a result, they often become discouraged and give up.

By being informed beforehand, you can make smarter decisions, be aware of the challenges you'll face, and make the preparations necessary to succeed in your endeavor.

Even if you don't have any of the advantages I've shared with you in the paragraphs above, chances are, you have some experience, skill, or talent that will benefit you at some point in the process.

A Tiny Tip: Identify your skill set and lean into it. And if you truly have no experience or skill set that is a benefit during your mission to build a tiny house, use it as an opportunity to gain new ones - and lean into that. Those are lifelong skills that you'll use time and again.

Conclusion

When building our tiny house, we didn't have any advantages that could help us. We were renters at that time, and we started building our house paycheck by paycheck.

To make things even more challenging, we lived 1.5 hours away from the construction site and worked 1 hour away in the opposite direction, which made managing the project even harder as it progressed.

But we leaned into it, learned from our mistakes, tried new things, and acquired new skills. Because of that (even though there are quite a few things we would do different the next time we build a tiny house) we're substantially better off today than we were then and living mortgage-free to this day.

So, if we did it... chances are, you can, too, no matter what circumstances you find yourself in.