Real Estate

Millennials look at tiny homes as new option for homeownership

Could this solve the housing problem for first-time homebuyers?

San Diego, California will create the city’s first “micro-housing” as an alternative for residents who want less expensive housing, according to an article by Kristian Castro for Fusion.

In the current competitive state of the housing market, many Millennials are finding it more difficult than ever to find a home as first time homebuyers. This neighborhood could hold the solutions for some.

The neighborhood, still under construction, consists of 50 tiny houses of about 300 square feet, according to the article. Whereas the average price to rent a one-bedroom apartment in San Diego is $1,552 per month, these homes will cost about $750 per month.

From the article:

Flexibility is another potential plus: tiny houses can be built on wheels and moved down the street, usually without a permit. With young adults increasingly moving from city to city, getting tied down to a 30-year mortgage on a traditional home may not appeal to a modern, mobile lifestyle.

“I don’t see a lot of builders targeting millennials unless they are upscale, luxury apartment dwellers,” said Los Angeles housing economist Gerd-Ulf Krueger. “In California, you are locked out of the housing market unless you are lucky to get a job and have a pretty good income. Any kind of new and revolutionary design of the community and the house has the potential to be a constructive innovation akin to what Steve Jobs did with computers.”

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3d rendering of a row of luxury townhouses along a street

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