14 Hot Tiny-Home Startups Are Trying to Combat the Housing Crisis

  • High prices and low inventory continue to squeeze Americans looking to buy and rent homes.
  • Tiny-home makers believe they offer affordable, sustainable, and even money-making options.
  • We compiled 14 tiny-home and accessory-dwelling-unit (ADU) startups shaking up the industry.

In today’s housing market, the list of reasons to buy a tiny home stands tall.

Whether you’re a millennial or Gen Z buyer facing record-high prices, a current homeowner looking to live with less, or a city dweller whose lifestyle shifted during the pandemic, tiny homes can be filled with promise.

Tiny homes can range in price and aesthetics, but typically remain under 600 square feet. Last year, the median size of a new single-family house in America was 2,273 square feet, according to the Census Bureau

In 2020, over 56% of Americans who responded to a recent survey by Fidelity National Financial’s IPX103 said they would consider living in a tiny home. As builders move to meet that demand, the tiny-home market could reach $5.8 billion by 2026, according to iProperty Management, a research site.

But it’s not just individual tastes driving demand. Tiny homes are also at the center of efforts to address climate change and affordable housing. Their often-modular approach can help reduce construction costs and make housing cheaper as a result. From all-electric homes to optimizing backyards in Los Angeles, the future of housing may look smaller.

They can also be money makers. Petite, picturesque Airbnbs are popular with Instagram-savvy travelers. In states like California, homeowners are tapping companies that plop prefabricated structures down in their backyards. In one model, a startup collects rent from the tenants of the accessory dwelling units, or ADUs — and pays out a portion to the homeowner.

We’ve compiled a list of the hottest tiny-home companies on the market, all shaking up the industry in different ways. Here they are, presented in alphabetical order.