How Income is a Factor in the Tiny Home Market
As we reviewed our notes to date from the past 5 sessions, the point we concluded from the income/age statistics didn’t identify the relationship. While the numbers proved that all household demographics could afford a tiny house, what we didn’t see at the time was a relationship between affordability and tiny home ownership. We have now made the association and are ready to apply the formula to our demographics.
We expect that tiny homes will be considered as an option for many different reasons in the future, but today the strongest interest comes from people looking for an affordable housing solution.
This can be extrapolated to suggest that those with more financial means, would be less interested in owning a tiny home. For our calculations, we have determined that an inverse relationship, meaning that the more a person or couple has available to spend, the less likely they are to spend it on a tiny home. We will call this the Affluence Factor (AF).
What we have done is taken our prospective tiny home buyer’s market after applying the disability and health factors, broken each age category apart by applying our single, couple and single parent percentages, applied the AF to each, then reassembled the groups by age. The following chart shows the market-to-date before and after the AF is applied. This reduced the market size by almost 49%.