Market Trends of Tiny Homes Industry
Household Segment Anticipated to Hold Major Share Due to Increasing Demand for Affordable Housing
In the United States, the median price of a new home is over USD 300,000. This is out of reach for many people, especially millennials, who are struggling to save for a down payment. Tiny homes, on the other hand, can be purchased for as little as USD 20,000. This makes them an affordable option for people looking for a place to live but need more money.
In the USA, At the federal level, housing initiatives are spearheaded by the Department of Housing and Urban Development (HUD). This covers everything, including building and mortgage programs. The goal of several HUD initiatives is to boost the availability of affordable housing. The Self-Help Homeownership Opportunity Programme (SHOP) is one of these. To assist NGOs in creating affordable housing for low-income buyers, the SHOP program awards funding. Between fiscal years 2011 and 2020, SHOP grants aided in the construction of homes in more than 40 states and 140 metropolitan regions, according to data from July and September 2023.
As housing costs continue to rise across the United States, older adults on fixed incomes are feeling the financial strain. The demand for affordable and accessible housing for senior citizens is greater than ever, as more than 15 million older adults find themselves living at or below 200 percent of the federal poverty level. To address this growing concern, here are some valuable insights into affordable housing options and subsidies for older adults.
By 2030, the Indian real estate market is predicted to reach USD 1 trillion, with affordable housing being a major contributor to this expansion. At one point, meeting the need for 40 million urban housing units looked unattainable due to the low purchasing power of a considerable portion of our population and an average annual population growth rate of 2.1%. But in the last few years, the government has made some significant announcements (a few examples) to support affordable housing, and things have changed.
North America is Anticipated to Hold a Major Share of the Market
The high cost of traditional residential flats, the presence of major international competitors, and the growing demand from millennials in the US and Canada for customized houses are the factors contributing to the rise of the regional industry. In Canada, more than four million young Canadians could be looking to buy a home between now and 2027, and 60% of millennials aged 26 to 41 aim to get out of the rental market or their parent's basement despite high real estate prices.
A survey found that almost two-thirds of Canadian millennials who don't already own a home are confident they will own a home, but 63% of them believe they will have to relocate to achieve this. In the US, millennials represent the largest generation of home buyers and are driving housing trends and demand for years to come. They are also comfortable buying homes online, with nearly 40% saying they would be comfortable purchasing their biggest financial asset online.
Additionally, in North America, the majority of luxury homebuyers are millennials, with 59% of peak luxury buyers being millennials who are looking to buy homes above the USD 3M price point.
For example, on July 11, 2022, Alta Cima Corporation and Champion Retail Housing, a Skyline Champion affiliate, signed into an agreement for the purchase of the Factory Expo Home Centre, which is situated at 12 Skyline Champion production plants across the United States. Skyline Champion receives continuous assistance from Alta Cima for the home centers.
