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Ask Dave

Tiny home depreciation?

Will a "tiny home" depreciate in value like a trailer? Dave addresses this question, and adds some additional advice for Romeo.

QUESTION: Romeo asks if “tiny homes” go down in value like trailers. Dave isn’t sure they will depreciate quite that much, but he also doesn’t think they will increase significantly in value.

ANSWER: That’s a tough one. I’m not certain they would depreciate like a trailer, but I don’t think they would go up in value much, either.

Anytime there’s a very limited demand for something, the price or value doesn’t generally increase. Very few people looking to buy tiny homes, so that makes the tiny home movement kind of a niche thing. Generally speaking, things that aren’t in high demand don’t appreciate very well.

Don’t invest in things that don’t have proven track records and don’t go up in value. I love real estate, but not tiny real estate.