Tiny homes have entered the societal mainstream in recent years with the help of TV shows like "Tiny House, Big Living," "Tiny House Nation," and "Tiny House Hunters," but the reality for many isn’t as glamorous or practical, reports CNBC staffer Kayleigh Kulp.
The high density, amenity-rich areas where a tiny home may work best may not be economical because high land costs limit resale potential.
"In the Washington, D.C., market it is hard to justify the land costs and the construction costs on tiny houses. A tiny house has such a limited market," said Sue Goodhart, real estate agent, The Goodhart Group at McEnearney Associates in Alexandria, Virginia.
"If the goal is to save money, I would have to say tiny home investors would need to go to areas where land prices are low, which means not located near major commuter routes."
Mike Arman, a retired Florida mortgage broker and real estate agent, said a tiny home may have to be purchased with cash because lenders may be hesitant to lend on a structure that small, especially if it is on wheels.