{"id":178530,"date":"2024-10-23T14:22:16","date_gmt":"2024-10-23T20:22:16","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=178530"},"modified":"2024-10-23T14:23:13","modified_gmt":"2024-10-23T20:23:13","slug":"amazon-turns-towards-cheap-adus","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/amazon-turns-towards-cheap-adus","title":{"rendered":"The $30,000 Box From Amazon That Could Transform Housing Markets (and Portfolios)"},"content":{"rendered":"\n

The housing crunch is taking homebuyers and investors back to the future. Power down your flux capacitor, though, because Amazon has made the time travel on your behalf by selling <\/span>mail-order prefab homes<\/span><\/a>.<\/span><\/p>\n\n\n\n

Indeed, homes-in-a-box or boxes are nothing new. Sears advertised its first mail-order home way back in <\/span>1908<\/span><\/a>. With the boom in <\/span>tiny homes<\/span><\/a> and the need to maximize every square inch of available space, <\/span>ADUs<\/span><\/a> (accessory dwelling units) are all the rage in high-priced cities facing an affordability crisis. <\/span><\/p>\n\n\n\n

Average full-sized home prices are currently above $400,000, but prefabbed ADUs come prepackaged and flat-packed <\/span>and are<\/span> ready to assemble <\/span>and be<\/span> delivered to your door or wherever you wish for under $30,000. They have a projected 25-year lifespan<\/span>. There<\/span> is more than enough time for investors to build a portfolio.<\/span> <\/span><\/p>\n\n\n\n

And Amazon is one of many companies selling these types of dwellings. <\/span>Home Depot<\/span><\/a> and <\/span>Walmart<\/span><\/a> also have their versions.<\/span><\/p>\n\n\n\n

Multiple prefab design choices are available online, from repurposed containers to homes on wheels and more conventional-looking structures. Prices start around $10,000 and increase depending on size and style. <\/span><\/p>\n\n\n\n

Practical Advantages of ADUs<\/span><\/h2>\n\n\n\n

Owning an ADU has multiple advantages, particularly for investors. <\/span><\/p>\n\n\n\n

Easy permitting in a lot of places<\/span><\/h3>\n\n\n\n

One advantage of owning a tiny home is that in some places, no permits are required, or they are at least <\/span>very easy<\/span> to acquire. Additionally, although some owners connect their homes to their <\/span>main<\/span> home’s utilities, it is also possible to live off the grid. All homes contain kitchens and bathrooms <\/span>and are<\/span> constructed from durable materials, making them well-suited to four-season living.<\/span><\/p>\n\n\n\n

Allows more living without new land<\/span><\/h3>\n\n\n\n

If homeowners or investors have a lot or a large backyard, they can maximize the space and earn extra income without buying another home for a fraction of the price.<\/span><\/p>\n\n\n\n

Enables multigenerational living<\/span><\/h3>\n\n\n\n

Whether you have aging parents or rebellious teens looking for their own space, ADUs allow families to stay close while allowing privacy and keeping costs down.<\/span><\/p>\n\n\n\n

Ideal for young professionals and gig workers in high-priced cities<\/span><\/h3>\n\n\n\n

One drawback of the modern era is finding accommodation in expensive cities at the start of your career or if your income <\/span>is inconsistent<\/span>.<\/span> If sharing with multiple roommates doesn’t appeal to you, an ADU could be the solution.<\/span><\/p>\n\n\n\n

Allows owners to be mortgage-free<\/span><\/h3>\n\n\n\n

Assuming you own the land where you wish to place your prefab home, the cost is so low that buyers can buy with cash and be mortgage-free, allowing them to make further investment choices without worrying about living expenses. <\/span><\/p>\n\n\n\n

Some Tiny Homes to Consider<\/span><\/h2>\n\n\n\n

Amazon container home<\/span><\/h3>\n\n\n\n

One Amazon ADU is the<\/span> 40-foot luxury portable shipping container home<\/span><\/a>, which retails for $28,865. A sleek two-story dwelling, it is easy to set up and can be used for multiple purposes. However, you will need to check with your municipality about installation rights.<\/span><\/p>\n\n\n\n

Another <\/span>Amazon container home<\/span><\/a> costs slightly less, at $23,039. It’s big enough to sleep a small family, with two levels and up to four bedrooms. It even has a balcony for additional outdoor space. The home has a customizable plan, and the price stays the same regardless of your choice. <\/span><\/p>\n\n\n\n

The Walmart $16,000 tiny home<\/span><\/h3>\n\n\n\n

Walmart’s 19-by-20-foot <\/span>expandable prefab house<\/span><\/a> costs $15,900. Like its Amazon counterpart, it is delivered by flatbed truck and requires a forklift for unloading. <\/span><\/p>\n\n\n\n

It is made by <\/span>Chery Industrial<\/span><\/a>, a New York-based storage solutions company, and contains a bedroom, living room, bathroom, dining room, and kitchen. Once assembled, it requires a little work because, like Amazon’s equivalent, it comes unfurnished and without appliances.<\/span><\/p>\n\n\n\n

Most tiny homes require a concrete slab to sit on, which adds to the costs, as does hiring professionals for the assembly.<\/span><\/p>\n\n\n\n

ADU-Friendly States<\/span><\/h2>\n\n\n\n

As the housing crisis deepens, more states <\/span>are becoming<\/span> ADU-friendly<\/span><\/a>, including pricier coastal markets like California, Oregon, Maine, Connecticut, Washington, and New York. Each, however, has its <\/span>own<\/span> guidelines and restrictions. <\/span><\/p>\n\n\n\n

Other states that allow ADUs include:<\/span><\/p>\n\n\n\n