The prices for land and new buildings are rising, as are energy costs. A tiny house saves a lot. Is the demand for mini houses now increasing significantly? Yes, but they are still not the solution to our social problems such as the lack of housing and rising costs.
The high construction and energy costs make houses with a particularly small area appear more attractive. A size of around 15 to 50 square meters is sufficient for so-called tiny houses. Every square meter of space costs money. And the smaller, of course, the lower the construction costs. According to a spokeswoman for the Central Association of the German Construction Industry, this circumstance makes “a tiny house interesting for one or the other”. The market in Germany is still manageable. Are manufacturers benefiting from the current crises?
The mini houses, which consume less energy due to their small size, can be used for living, as a holiday home or office. Some of them are on four wheels and can even easily change location. The managing director of the ‘Tiny House Manufaktur’ in Cologne, Michael Heller, says the concept is becoming more attractive. Against the background of the energy crisis, awareness of the need to reduce consumption is growing. The tiny houses sector benefits from this.
Customers have also changed: “Meanwhile we have arrived in the middle of society in terms of age, but also in terms of social class.” Heller’s company started in 2016 and builds half a dozen tiny houses a year. “The last two were for two older women, one in their 70s and the other in their 60s, who said they didn’t want such a large area anymore.” The financial aspect is equally important for buyers. The price per square meter is higher for tiny houses. A total price of around 80,000 euros for a tiny house 7.20 meters long, 2.55 meters wide and 4 meters high is of course still significantly cheaper than a 100 square meter apartment in Cologne for half a million, says Heller.
Tiny houses have been around in the US for decades. The global financial crisis that started in 2007 gave the trend a boost because many homeowners were unable to pay back their loans and were forced to downsize. In Germany there are now around 70 manufacturers, estimates Johannes Laible, board member of the Tiny House Association.
‘Smart House’ in Löhne, Westphalia has been building tiny houses since 2008 – now around 60 a year. “Demand is definitely increasing,” says the company, which sells its 18 to 50 square meter mini houses throughout Germany and the Benelux countries. The construction time is four to five months, the price for ready-to-move-in tiny houses is between 2,800 and 3,000 euros per square meter. From the point of view of the Central Association of the German Construction Industry, however, the tiny houses remain a marginal phenomenon, possibly even just a trend for a very narrow target group. There is no official data on the number of houses in XS format across Germany – yet.
The “Tiny Houses Market Study” published in 2021 by the consulting firm ‘Livee’ in cooperation with the Tiny House Association lists a good 750 mini houses sold in 2019. According to the study, the potential is significantly greater, not least because of the growing number of single households in Germany, for whom forms of living with a smaller area can be attractive. Nevertheless, the President of the Federal Chamber of Architects, Andrea Gebhard, sees no boom in tiny houses coming. “The trend towards tiny houses that are permanently inhabited is also growing in Germany and Europe, but it is likely to remain a niche trend,” she says. “Building small can save space and resources, and I also think it’s a good development to improve our high standard of comfort.” But the principle of tiny houses cannot be transferred to large parts of society.
“The cleverly planned apartment building with a well-designed living environment is still unbeatable for sustainable, inexpensive and efficient construction methods,” says Gebhard. “Tiny houses will certainly not solve our social problems such as a lack of housing and rising costs.” And they are not automatically cheap either: “I can only plead for the realization of small houses to be well planned,” advises Gebhard. “Tiny house does not necessarily mean tiny costs.” ‘live’-
Managing Director Christian Brecht sees great potential for small forms of living, but thinks the idea that the current crises are promoting the trend towards the tiny house is too simple. The expert points out that an established manufacturer of mini houses recently had to file for bankruptcy. The high construction and energy costs also make their business more difficult.
Michael Heller from the ‘Tiny House Manufaktur’ takes a similar view. It has recently happened twice that customers did not get a loan from the bank and the orders were no longer available.
Johannes Laible from the Tiny House Association confirms that there is uncertainty among many potential builders. “These are the same effects as in residential construction overall.” In the case of tiny houses, there is also the fact that there are often problems with the development plans. “There is a lack of flexibility,” he criticized. “Every municipality has leftover lots that could be used wonderfully for tiny houses.” In large cities, according to Laible, this could be an opportunity for meaningful densification. “If we become more flexible there, then a real boom is imminent.”