Dave Ramsey says: Tiny home market likely doesn’t have much room to grow

A tiny home may be cute, but the market demand is low and the value isn't likely to go up much. Choose an investment that will appreciate, Dave Ramsey says.

BY DAVE RAMSEY

Jun 5, 2018, 11:30 AM

Follow on Google News

(AP Photo)

Dear Dave,

Do you think the value of a “tiny home” would depreciate like a trailer?

— Romeo

Dear Romeo,

That’s a tough one. I’m not certain they would depreciate like a trailer, but I don’t think they would go up in value much, either.

Anytime there’s a very limited demand for something, the price or value doesn’t generally increase. And there are very few people looking to buy tiny homes.

The tiny home movement is kind of a niche thing. It’s a very narrow market, and something that doesn’t have a lot of demand isn’t going to appreciate.

I would avoid the tiny house movement if I were you, Romeo. Don’t invest in things that don’t have proven track records and don’t go up in value.

I love real estate, but not tiny real estate!

— Dave