Dave Says: Don’t Count On Tiny Homes To Be Good Investments

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Posted: Apr 19, 2018 12:03 PM
Dave Says: Don’t Count On Tiny Homes To Be Good Investments

Dear Dave,

Do you think the value of a “tiny home” would depreciate like a trailer?

Romeo

Dear Romeo,

That’s a tough one. I’m not certain they would depreciate like a trailer, but I don’t think they would go up in value much, either. 

Anytime there’s a very limited demand for something, the price or value doesn’t generally increase. And there are very few people looking to buy tiny homes. The tiny home movement is kind of a niche thing. It’s a very narrow market, and something that doesn’t have a lot of demand isn’t going to appreciate.

I would avoid the tiny house movement if I were you, Romeo. Don’t invest in things that don’t have proven track records and don’t go up in value. I love real estate, but not tiny real estate!

—Dave