Tiny Houses: Where to Buy or Build a Tiny Home Now

Thinking about downsizing? Vermont is the best state for tiny house living and New Jersey is the worst.

A hand holds a miniature model of a home.
(Image credit: Getty Images)

Tiny housing living isn't for everyone, but for many people, the benefits outweigh the small size. To celebrate TinyFest California this March 16, LawnStarter ranked 2024's Best States for Tiny House Living based on 23 key factors. 

How big is a tiny house? 

While there isn’t a standard size, tiny houses are usually between 100 and 400 square feet and rarely exceed 500 square feet. By comparison, the median size of a new, single-family home was 2,273 square feet in 2021, according to the U.S. Census Bureau.

How much do tiny houses cost?

The average price of a tiny home is about $40,000 to $60,000 versus the average price of a normal-sized house, which can top $100,000. However, location, size, customization, furnishings, zoning laws and home insurance costs are all factors that can drive the overall price of a tiny house higher. Whether you buy a pre-existing tiny house or build one from scratch plays a role in the pricing too.

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Why live in a tiny house?

Tiny houses are cozy, energy-efficient, vertically and horizontally-challenged and wildly popular — and the interest in them is only gaining momentum. Still, the price and the experience of living in one can vary widely depending on many factors, including location.

So which states are the best for tiny house living? Here are the ten best (and ten worst) based on the LawnStarter survey.

10 best places for tiny house living

Swipe to scroll horizontally
RankStateOverall ScoreLegality RankUrban LIfestyle RankRemote Lifestyle Rank
1Vermont89.071215
2Kentucky85.341143
3Arkansas84.601516
4Maine83.801420
5Minnesota78.321214
6Montana76.3911810
7Alabama74.451628
8Georgia73.4011223
9Texas72.911392
10Kansas70.351377

10 worst places for tiny house living

Swipe to scroll horizontally
RankStateOverall ScoreLegality RankUrban Lifestyle RankRemote Lifestyle Rank
41Maryland42.9413847
42Nevada36.7415045
43West Virginia43.314921
44Iowa43.164281
45Wisconsin40.6041714
46North Dakota37.164328
47Louisiana35.4941525
48Alaska29.314743
49New York14.3143541
50New Jersey5.2744350

Key Findings

  • Vermont (No. 1), Arkansas (No. 3), and Minnesota (No. 5) offer the most ideal conditions for compact dwellings.
  • Eight states ban tiny homes or at least require very strict guidelines.
  • Iowa (No. 44) leads all 50 states in off-grid lifestyle-friendliness.
  • Tiny homes can cost as little as $15,000, according to Realtor.com 

Thinking about downsizing?

If you think tiny house living is the right lifestyle for you, there are several questions to ask yourself. 

  • Are tiny houses illegal in my state?
  • In your state, is there a minimum or maximum size for a tiny house?
  • How much does the average tiny house cost?
  • How do you finance a tiny house?
  • Can you insure a tiny house?
  • Can you buy a tiny house or do you have to build a tiny house yourself?
  • Can you truly live off-grid in your tiny home?
  • Where can you store all your stuff?
  • Are tiny houses a pathway to financial independence/early retirement?

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Kathryn Pomroy
Contributor

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.