What if your next home could arrive in a box? Amazon’s $12,000 prefab tiny homes have captured the imagination of many aspiring homeowners, promising an affordable, convenient solution to traditional housing. We admit that the idea of a ready-made, budget-friendly backyard tiny home delivered straight to your doorstep is undeniably exciting.
However, beyond the initial thrill and the seemingly low price tag of these tiny homes, there may be a more complex and less dazzling reality.
In this article, we explore the true cost of these prefabricated tiny homes in terms of finances, logistics, and lifestyle adjustments. We’ll also examine the long-term sustainability of these homes compared to building them yourself.
What are Prefab Tiny Homes?
Generally, any home that is 400 square feet or less is considered a tiny home, and prefab tiny homes (short for prefabricated tiny homes) are no different. However, they are built off-site and transported to their final location for assembly.
With prefab tiny homes in Ontario, the government has created a two-step process—off-site construction compliance and on-site assembly and zoning compliance—as a regulatory framework designed to streamline the approval and construction of prefabricated buildings, including tiny homes.
This framework ensures that these homes comply with the Ontario Building Code during the off-site construction phase and then verifies that they meet local zoning and site requirements when they are assembled on-site.
Since prefab tiny homes are delivered, all you have to do is prepare the spot where you’ll place them. This is unlike conventionally built backyard tiny homes, where you have to go through the traditional construction process to build them “from the ground up.”
With rising inflation and increasing materials costs, prefab tiny homes seem to present a much more appealing and cheaper alternative to building a house. Here are some more perks that are fueling the rise in popularity of prefab tiny homes:
- Quick Installation: One benefit of these preconstructed tiny homes is how fast you can start living in them. Once delivered to your site, prefab tiny homes are already mostly assembled, minimizing the disruption and labour costs associated with traditional home construction.
- Minimalism: Prefab tiny homes are also popular for their streamlined design. These homes generally encourage a lifestyle choice that emphasizes simplicity, efficiency, and intentional living, as they maximize space while limiting unnecessary additions.
- Customization: Despite their small size, prefab tiny homes can be customized to meet individual needs and preferences, from layout and finishes to add-on features. For instance, some homeowners may choose to install solar panels and take their tiny homes off the electrical grid (like our Eden Dwelling units).
As the name implies, tiny homes are very compact and generally require inventive solutions for furniture and amenities to maximize space. But they do offer a modern solution to contemporary housing challenges.
Beyond the Price Tag: Unveiling Hidden Costs
With all that said, you should note that this number is merely the beginning of the expenses associated with purchasing your prefabricated home. In a Canadian context, it would be next to impossible to realize Amazon’s $12,000 price tag on prefab tiny homes.
Let’s walk through some less-than-obvious expenses associated with getting your prefab tiny home fully functional:
Hidden Cost #1: Delivery & Installation
While having your home delivered to your doorstep is incredibly convenient, it comes at a price, literally. Depending on the location of your property or preferred site, delivery fees for your prefabricated tiny home can sometimes be substantial.
For instance, delivery to Canada can be as high as $10,000, sometimes more. Additionally, you will need to have a crane on standby to place your prefab home in the specific spot that you want it, costing another $5,000 at minimum.
Then, there’s the cost of installation. In most cases, you will require professional help to assemble your prefab tiny home before it becomes fully functional. This professional installation service can quickly escalate the total expense of your prefab home.
Hidden Cost #2: Foundation & Permits
While some prefabricated tiny homes come with a pre-built flooring system, a solid foundation is still needed based on the provincial building cost in your area. While there are various types of foundations (e.g., helical piers, poured slab on grab, engineered slabs), prefab tiny homes do not require extensive or specialized foundations. Preparing the foundation site may involve clearing land, leveling the ground, and constructing a foundation, whether concrete, piers or another suitable type.
Regardless of the foundation you choose, constructing it will cost you between $10,000 and $20,000, depending on the size, model, and site-specific conditions, in addition to the purchase price of your prefab tiny home.
Hidden Cost #3: Compliance with Local Regulations (Zoning Bylaws & Building Codes)
Another additional cost associated with prefab tiny homes is upgrading to meet local building codes. While the advertised price might make prefab tiny homes seem like an excellent bargain, the materials used to construct these homes are often cheaper and may not comply with local building codes. This can lead to issues with durability, safety, and legality.
If you’re in Canada, it is usually best to choose units labeled CSA A277, as this classification indicates they meet higher building code requirements and are recognized by municipalities across the country.
However, if you end up buying a non-compliant home, you may need to make additional modifications or upgrades to meet the local building codes in your region. Unfortunately, this can significantly increase the total cost. Ensuring that your tiny home adheres to all relevant codes is a critical but often overlooked expense. In addition, securing the necessary permits for construction, zoning, and utilities is also important, as you need to ensure you have permissions ahead of the unit’s delivery so that you don’t have to pay any removal costs should you not be in compliance.
The Road to Functionality: Essential Expenses
When dreaming about your cozy tiny home, it’s all too easy to get caught up in the excitement of a low price. However, the next question to ask is — how will it work?
Before you can turn your new prefab tiny home into a livable space, you’ll need to factor in several essential expenses for utilities.
Plumbing and Electrical Systems
The advertised price of prefab tiny homes typically doesn’t cover the installation of essential systems such as plumbing and electrical wiring. This includes connections to a power source, water source, and a septic structure.
Since it is impractical to live in a home without plumbing or electricity, you’ll need to install these systems and make sure they are up to building standards and city codes. However, they’ll naturally increase your overall expenses.
HVAC Systems
Another essential expense you’ll need to make after buying your prefab tiny home is investing in an HVAC system. Heating, ventilation, and air conditioning are vital for maintaining a comfortable living environment throughout the year.
Since prefab tiny homes generally do not include these systems in the base price, the cost of purchasing and installing them will eventually add up to your final expenditure. So, you’ll have to consider your budget and decide if you want a traditional HVAC system, a mini-split unit, or portable heaters and air conditioners.
Finishing Touches
Beyond the essential systems, several finishing touches are needed to make your prefabricated tiny home livable and comfortable.
Here are some finishes you may need:
- Cabinets and storage: Custom or prefabricated cabinets, shelving units, and other storage solutions are necessary to maximize space and functionality.
- Furniture: To make your space comfortable and usable, you’ll need to furnish it with beds, sofas, tables, chairs, and other essential items.
- Lighting fixtures: In addition to basic wiring, you’ll need to select and install appropriate lighting fixtures for functionality and aesthetics.
- Window treatments: You’ll also need to invest in blinds, curtains, or shades for privacy and light control.
From essential utilities to personal touches, additional expenses when trying to set your prefab tiny how can quickly add up. Therefore, if you’re going to order a prefab tiny home from Amazon, it is best to plan for these costs so you can achieve a space that is perfectly suited to your lifestyle.
Beyond the Numbers: Considering Long-Term Costs
While the upfront cost of $12,000 prefab tiny homes and the additional expenses of installing essential systems are crucial considerations you need to make, you also need to look beyond them to the long-term costs associated with homeownership.
Here are key factors to keep in mind:
1. Maintenance & Repairs
Prefab tiny homes offer convenience and affordability, but they may also come with unique maintenance and repair requirements. Since materials and construction methods used in prefabricated structures can differ from traditional builds, they typically also require specific professional services.
For instance, certain prefab materials might require more frequent inspections or specialized maintenance to ensure longevity. By understanding these requirements and budgeting for ongoing maintenance and occasional repairs, you can stay ahead of unexpected expenses down the line.
2. Financing Options
Securing financing for a prefab tiny home is typically different from obtaining a mortgage for a traditional house. More often than not, you may have to settle for personal loans, RV loans, or specialized tiny home financing programs. Each of these options comes with its unique terms, interest rates, and repayment plans that can significantly impact the overall cost of your home. In other words, if you don’t have the cash upfront, it may end up costing you more due to higher interest rates.
We recommend exploring and comparing different financing solutions to find one that best suits your financial situation.
3. Resale Value
Investing in a prefab tiny home also involves considering its resale value. While tiny homes are gaining popularity, they are also a very niche market. As a result, you’ll need to conduct specific research on the resale market for tiny homes to estimate how much value they retain or gain over time.
You should also note that factors such as the quality of construction and the condition of the home will influence its resale value. As a rule of thumb, a well-maintained prefab tiny home will have a better return on investment than homes with less desirable attributes.
The Bottom Line: Making an Informed Decision
Prefab tiny homes from Amazon may seem affordable upfront, but when you take into account all the hidden costs related to permitting, delivery, and installation it would be next to impossible to achieve a fully functional house that meets local regulations and building standards. So, you’ll need to look beyond the appealing price tag and evaluate the full spectrum of costs and factors involved.
Take the Next Step with Resimate
Ready to transform your backyard into a functional and stylish living space? Resimate specializes in helping you achieve your dream ADU at a reasonable price tag while ensuring compliance with all relevant regulations
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