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The median home size in the US is approximately 1,834 square feet as of October 2025, but there’s lots of interest in tiny houses these days. How big is that? A typical definition of a tiny house is that it’s smaller than 400 square feet. Some people pride themselves on living in a mere 225 square feet or even under 100 square feet.
Living in a tiny house can be affordable, eco-smart, and part of a minimalist ethos, whether your tastes run towards cottage charm or contemporary. But how much does it cost? And what if you’re in a small home and want to remodel it; is that even possible?
Read on to learn more about tiny houses and the related costs to decide if this style of living is right for you.
Key Points
• Tiny houses are typically under 400 square feet, offering affordability, eco-friendliness, and minimalist living.
• Downsizing is essential for tiny home living — prioritize multipurpose furniture, declutter, and maximize functionality.
• Smart design strategies include clear priority-setting, creative storage solutions like lofts and under-stair drawers, and remodels that can add resale value.
• Costs vary widely: prebuilt tiny homes can cost $40k to $100K, pre-owned options can be as low as $20,000, and custom builds may exceed $100,000.
• Tiny homes use far less energy than traditional homes, sometimes less than 10% of the consumption of a standard-size house.
Creative Tiny House Designs
Tiny homes can be as unique as their owners. There are small houses that look like classic woodsy cabins, A-frames, treehouses, charming Victorian structures, ultra-modern boxes, and more.
Some are built on site; others are fabricated wholly or partially elsewhere and brought to your site. You may see terms like prebuilt or prefabricated used.
House Beautiful, Country Living, and other design publications often highlight inspiring tiny house designs, and you can also find ideas on Pinterest, Instagram, and other social media platforms.
Typically, tiny houses are all about flexibility and functionality. Just as you budget your money, the square footage in a small home must be allocated. Some are one open room with different zones for living. Others may be divided into separate spaces with privacy, but there is usually an element of multifunctionality to allow the house to serve whatever the resident’s needs are, from working to relaxing, from sleeping to entertaining.
Downsizing into a Tiny House
If you’ve recently purchased a home that’s tiny and are seriously considering doing so, you will probably need to downsize more first. If you’re the kind of person who has drawers’ full of workout wear, hundreds of books, and/or a growing art collection, you may need to do some pruning. Here are some tips:
• In a tiny house, virtually everything needs a purpose—and ideally, can have multiple purposes. Dishes that are purely decorative, for example, are less likely to have a place in your home than beautiful ones that are also functional. Have an adorable cup that you love? Great, but will it double as a pencil holder?
• Most people who downsize their home quickly realize that a good percentage of their belongings have been kept for sentimental reasons. Some people moving into tiny houses have found that, if they carefully photograph these items and then find an excellent new home for them, then a scrapbook containing these photos provides pleasure without taking up much space.
• It can help gamify the process of downsizing to challenge yourself to toss, regift, or give away an item a day.
• Do consult the works of Marie Kondo, of the “KonMari” method fame, for guidance on deciding how to keep what truly sparks joy and jettison the rest.
• Hold a “take it or pack it” party. Set up a table full of stuff you don’t want for friends to take as they help you box up what you do want to take with you when you move.
• Sell your stuff that you no longer want or need to raise funds for your new home.
• Keep furniture that has multiple purposes. A sofa, for example, may be what the family uses during the day and a guest sleeps on at night.
Recommended: How to Lower Credit Card Debt Without Ruining Your Credit
Tiny House Design Tips
As you move towards tiny house living, consider these design pointers to help ensure that your little kingdom works as well as possible for you. This advice can also help if you are remodeling a tiny house.
• Prioritize your needs so the space can accommodate what is truly important. Do you need to be able to work from home and be on Zoom calls regularly? Or is this a place where you want to carve out room to cook with your best friend? Be ultra-clear about your top priorities because there is no room for error in these compact homes.
• If you are renovating a tiny home, don’t forget to consider how your remodel can impact your house’s value. You likely want to add value to your home vs. invest money that can’t be recouped. You might, say, compare the cost of a home improvement loan vs. the enhanced retail value of your tiny house, and see if upgrading your property makes sense.
• Think storage, storage, storage. For instance, consider adding a sleeping loft and then using the space beneath the stairs leading to the loft for more storage. Drawers can be built into loft stairs and there can be a space reserved for hanging your clothes. You can store plenty beneath your bed, or even try drawers under your couch.
In your kitchen, you can hang appliances beneath cabinets (which can extend right up to the ceiling) to keep counter space free, add drawers to the kick plates of your cabinets—and even choose plug-in kitchen appliances (including a stovetop) that can be put away, as needed, for extra space.
Costs to Expect with a Tiny House
The cost of a tiny home can vary tremendously, as you might imagine. Here are some guidelines to get you started:
• Overall, tiny houses tend to be less expensive to build and own than a larger home, due to economies of scale. However, the per-square-foot costs are typically higher. To build a tiny house may run 300 to $400 per square foot vs. $150 per square foot for a standard-size home.
• Prebuilt tiny homes can cost around $100,000 (this doesn’t include the land they are on), and purchasing a pre-owned one can be as little as $30,000. Building your own can easily cost $100,000 or more, depending on the complexity and detailing. However, when you compare this to the average home value of $360,727 in late 2025 according to Zillow, you see that the savings can be significant.
• Tiny homes can use a fraction of the energy (even less than 10%) vs. a typical-size home. This is due to the smaller size, certainly, as well as there may be other efficiencies in terms of their design.
Using a Personal Loan for Your Tiny House Expenses
If you already own a tiny home but want to renovate it or are buying one and want to remodel your home right away, it may be tempting to put the costs on your credit card. After all, a small home means small expenses, right?
Not necessarily. Even if the costs are low, by putting them on a credit card, which probably charges a high interest rate, you can wind up with debt that is hard to pay off. That interest can have a way of accumulating quickly.
A better solution might be a personal loan vs. a credit card, which can offer a significantly lower interest rate. You’ll have a fixed, predictable monthly payment instead of potentially multiple fluctuating credit card bills.
If you think a personal loan could be the right move for you and your tiny home plans, shop around to see what offers are available.
Recommended: Typical Personal Loan Requirements
The Takeaway
At 400 square feet or less, tiny homes can be an economical and appealing option for many homeowners. Small houses can be customized and upgraded. Financing this work can be handled in a number of different ways, including personal loans.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
How big is a tiny house?
Typically, a tiny house is anywhere from 100 to 400 square feet, considerably smaller than the average U.S. home, which is currently almost 2,00o square feet.
How much does a tiny home cost?
Costs for a tiny home vary considerably, from about $20,000 to $100,000 or more. Much depends on the size, detail, and features of the home, as well as whether it’s new or preowned.
Can you use a credit card to renovate a tiny home?
Yes, you can often put tiny home upgrades on a credit card. However, credit cards usually carry high interest rates. For this reason, you may want to consider taking out a personal loan, which typically charges a lower interest rate.
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