Home Depot Is Selling Tiny Homes for $6,000—Are They Worth It?

Over the past decade, the idea of giving up a traditional house in favor of a more compact tiny home has become a booming subculture. Proponents of the fun-sized living quarters say the smaller square footage can help reduce the stress of upkeep and make it easier to live a minimalist lifestyle. The boom in popularity has even made it less complicated to find pre-fab units for anyone looking for an even easier transition, with big box stores like Home Depot selling tiny homes for about $6,000 each. But could making the seemingly affordable change to a small house be a huge mistake? Read on to see how the experts weigh in on the suddenly popular product—and if they are even worth it in the end.

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It's no secret that the housing market is a little unpredictable these days, with soaring costs in most cities making homeownership seem like an impossible dream for many. These conditions have forced some prospective homebuyers to seek out other options, including tiny homes that require a fraction of the footprint. And thanks to some retailers, the goal of having four walls and a roof to call your own could potentially be purchased for less than the price of many used cars.

One such option is the Fairview Wood Storage Shed, which retails for a modest $6,380. As the name suggests, the unit is intended to be used as a storage space for yard tools and other items. But thanks to its multiple windows, doors, and 192 square feet of space, some have argued that it could easily serve as a tiny home or add-on residence—and it's available for delivery to most addresses in the U.S. in about two weeks.

So far, the item has just above a four-star rating on Home Depot's website with some pretty glowing reviews. "Excellent quality. Since I'm 77 and have a bad back, I had to hire someone to put it together. It took two people a week," one customer wrote in Jan. 2023. "Ready to start filling it up. Couldn't be happier!"

The unit is also an unbelievable bargain compared to the market's current state. The median house price in the U.S. was $436,800 in the first quarter of 2023, shooting up 32 percent from 2020, according to The Motley Fool.

It's still important to note that the unit itself isn't exactly move-in ready out of the box, as it doesn't include the heating, air conditioning, flooring, plumbing, fixtures, and furniture that make a house actually liveable.

But according to Nichole Abbott, an interior designer with Floor360, working with smaller square footage means you don't have to purchase large quantities of materials like flooring or spend a lot on large furniture.

"As long as you keep your décor scaled to a similar size range, the overall look will be appealing," she tells Best Life. "Another upside is the reduced cost of utilities for heating, electricity, cooling, and water. Investing in solar won't cost as much because you won't need as many panels."ae0fcc31ae342fd3a1346ebb1f342fcb

And while they're bare bones, the Home Depot units mark a significant price drop from previous iterations by forgoing the pricey initial need to hire an architect and builder.

"In the past, these builder tiny homes could be as much as $200,000, which obviously compared to $6,000 is a lot more money," says Sebastian Jania, owner of Ontario Property Buyers. "Further, having the option to have a portable tiny home is a massive benefit as it allows for a transferable property."

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But if the idea of finding a new home for just over $6,000 may sound too good to be true, that's because some experts caution that it likely is.

Nate Stover, head builder and designer at Innovative Spaces, points out that the unit is not a true tiny home, and that the amount of work required to make the space liveable could be overwhelming for those not ready to take on the project.

"Home Depot does sell tiny home kits that start around $32,000 that go up to over $60,000, but keep in mind these are kits that still need to be built," he points out. "As in all construction, the shell of a house is one of the cheapest parts of your build. This does not include the foundation you still need to pay for."

There are also other drawbacks to investing in a non-traditional house. "A downside of a tiny home is the uncertainty of it appreciating in value," cautions Abbott. "It's essentially the same premise as a car or boat: It's only going to lose value."

And ultimately, the decision to put up a tiny house might not even be up to you. "Your local city zoning codes might not allow for this size home to be built, or there may be a minimum size required," Abbott warns. "Don't buy until you check your local restrictions."

When it comes down to it, the decision over where you want to live will likely be one of the more critical choices you ever make. That's why it's vital to consider all the factors before swapping in your normal-sized abode for a smaller one.

"If you're considering buying a $6,000 tiny home like this from Home Depot, it's essential to do your research and ensure that it's the right choice," says Justin Draplin, CEO of Eclipse Cottages. "Talk to other tiny homeowners, read online reviews, and visit tiny home shows to understand better what tiny home life is like."

He also points out that at just under 200 square feet, the units might be a harder sell for some—even besides being able to entertain guests from time to time.

"This is enough space for one or two people, but it would be tight for a family," Draplin says. "If you need more space, you'll need to spend more money on a larger tiny home."

Still, there are ways to make such tiny houses work. "Outdoor living space would be key to making the most of this living arrangement. Plan on an outdoor living room and kitchen in a mild climate area to enjoy the tiny home lifestyle," Abbott suggests.