If you’re wondering if tiny homes appreciate or depreciate in value over time, we’re here to tackle that question for you!
Roy Asks, “Do Tiny Houses Appreciate or Depreciate in Value?”
Could you do an article about whether tiny houses appreciate or depreciate in value. I would think that one built on wheels, so it could be moved, would depreciate like an RV or trailer. But one built on a permanent foundation would appreciate in value, like any regularly built home. Am I right or not? Thanks for the help.
So what do you think? Do tiny homes on trailers appreciate or depreciate? And why? Well, here’s what we think and why:
The Pearl Tiny House on Wheels by MTL
Unfortunately, Most THOW’s Are Going to Depreciate In Value, Here’s Why:
Roy’s got the right idea because if you have a tiny home on a trailer, like most other trailers or motorhomes, it’s going to depreciate in value over time because of normal wear and tear.
Unless, of course, your tiny home somehow happens to be so unique and valuable that there is high demand for it (and low or no supply), right? Like a collectible car or something, which is unlikely. You would also have to keep it in tip top condition over a long period of time.
The Damselfly THOW by Zyl Vardos
Now if your tiny home happens to be on a foundation on your own piece of land, your tiny house structure actually still depreciates over time just like ALL structures (because of wear and tear and so on) but the land that it sits on usually appreciates over the long-term because it’s land and there’s only so much of it, right?
Land is What Appreciates in Value Over Time, NOT Structures and Dwellings
So it’s land that appreciates in value, NOT structures and dwellings. Even still, there is no guarantee that your land will appreciate even though it’s highly likely over a long period of time.
Tiny Cabin on a Foundation in Asheville by Nanostead
ASKTHT: Your Tiny House Questions Answered! Do Tiny Homes Appreciate or Depreciate in Value?
You can listen to me tackle the question in our new ASKTHT Podcast which is coming soon below:
What Do You Think?
Did we do a good job of answering this question? If not, what did we miss? Let’s talk about it in the comments!
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