Is Tiny home trend the next mobile home park?

Question

I am seeing more and more about tiny home communities popping up especially in West coast area. Is this the next mobile park movement for the millennials?

Is this a fad or something worth looking into for investment?

What are your thoughts?

Grant Rothenburger · Answer

@John Kwon

I like the idea @Mike Reynolds had of Airbnb-ing them more than owning a park. I'd also try building them and selling or heck if used ones are on the market flip a tiny home! I'd do any of those before owning a whole park of them, unless it was also an RV park or mobile home park.

Mike Reynolds · Answer

There are many going up in Texas too. I think differently than most. New regulations and energy codes are coming. Depending on who gets elected there will be even more. They use less energy than a bigger house.

Doesn't mean I am ready to invest in a tiny park though. I am considering building one or two and AirBnB them just to test the market.

Grant Rothenburger · Answer

Let us know how it goes!

John Kwon · Answer

@Mike Reynolds @Grant Rothenburger

AirBnB sounds like a fabulous idea as a niche market for tourism. I like the idea of selling a unique place for short term rental. I live about 1.5 hr north of NYC with lots of hikers and weekenders, perhaps this might be an interesting venture.

Nathan Gesner · Answer

I think it's a fad. There aren't very many people doing it and I've seen quite a few that give up after a year or two and move into something bigger. When a fart in the bedroom blows your hair back in the living room, it's not so cute any more.

Trailer parks are in high demand because they are affordable. That's the key market. Look at housing in major metros like Hong Kong where young people are living in what is essentially a studio or 1-bed condo and paying $500,000 for them. The average cost of a single-family home in my town is $250,000 and there aren't many jobs that can pay for that. We have young people that can't afford to buy much more than a townhome. When a decent mobile home comes on the market (usually around $25,000 - $35,000) people are chomping at the bit to purchase.

Cities are killing off mobile home parks because they don't produce much in sales tax, are generally unsightly, and have high potential of turning into a haven for criminals. I would love to find a compromise and develop something that includes small homes (2-3 bed, 1 garage) at 50% the cost of a typical home.

Account Closed · Answer

I think it is a niche market which is slightly faddish.

These tiny homes aren’t cheap in reality and I think will lose the interest of the majority of people.  Yes there are the extreme minimalist type people that will live their life in a tiny home, but you as an investor can’t capitalize on those people, they will own land and stick it in their own property.

There’s some tiny home communities in central Florida and it seems more like a mobile home park for people that don’t want to live in a mobile home?  Again just opinion and generalization at a 40,000 foot overview.

I think there’s money to be made but I also think you need to know the market for it and how to attract new people to it.

John Kwon · Answer

@Nathan G. I agree that there is a market for people looking for a decent neighborhood with good schools but can't afford a house. I am noting that housing cost is skyrocketing around my area and there is shortage  or lack of affordable homes. Condos are a good option as entry point, but condo fees are very high in our area, too. I am looking into mobile park and tiny homes came up. I think cost of a mobile home vs tiny homes are about the same, but mobile homes are definitely geared towards a family. But tiny homes does not seem to have the connotation associated with a "mobile homes".  As Eric C mentioned, target market seems very narrow...

Jeff Morelock · Answer

I've been looking into it. Many counties and municipalities are treating them like RVs, which I guess they are, but I think they can also be "something different".  Sometimes its hard to get a straight answer from a zoning department - at least in my area of Florida anyway.

Is Tiny home trend the next mobile home park?

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