Tiny Home Blog

Affordable Housing, Simple Living

Are tiny homes and ADUs recession proof?

Recession proofTiny homes have become increasingly popular in recent years as a way to downsize and simplify one’s lifestyle. But with the recent economic downturn, many people are wondering if tiny homes are truly recession-proof. While there are certainly some benefits to owning a tiny home that can help weather economic storms, it’s important to consider all of the factors at play before making a decision.

One of the main arguments in favor of tiny homes being recession-proof is that they tend to have much lower monthly mortgage payments than traditional homes. This can be especially helpful if you lose your job or experience a reduction in income during an economic downturn. With a smaller mortgage payment, you’ll have more financial flexibility to weather the storm and make ends meet until you’re able to bounce back financially.

Another argument in favor of tiny homes is that they often require less debt to pay off. Because tiny houses are so much smaller than traditional homes, you’ll likely need to take out a smaller mortgage to purchase one. This means that you’ll have less debt to pay off over the long term, which can be a big help if you’re struggling to make ends meet during a recession.

Additionally, if you own a tiny home, you may have the option to generate extra income by renting it out. This can be especially useful if you’re unable to find work during a recession and need to bring in some extra cash. By renting out your tiny home, you’ll be able to generate some much-needed income and make ends meet until you’re able to get back on your feet financially.

ADUs practically recession proof

However, it’s important to consider some of the potential drawbacks to tiny homes as well. For one thing, tiny houses may not appreciate in value as much as traditional homes. This means that if you decide to sell your tiny home during a recession, you may not get as much money for it as you would have during more stable economic times.

Another potential issue with tiny houses is that they may be more vulnerable to natural disasters than traditional homes. Because they are smaller and often built with lightweight materials, tiny homes may be more prone to damage during storms or earthquakes. This means that you could end up having to spend money on repairs or even rebuild your tiny home if it’s severely damaged.

Finally, it’s worth noting that tiny houses may not be for everyone. Some people simply need more space and may not be able to live comfortably in a tiny home, especially if they have a family or a lot of possessions. It’s important to consider your own needs and lifestyle before deciding if a tiny home is the right choice for you.


In conclusion, while tiny homes can certainly have some benefits that make them more recession-proof than traditional homes, it’s important to consider all of the factors at play before making a decision. Tiny homes may be a good option for those looking to downsize and simplify their lifestyle, but they may not be right for everyone. If you’re considering a tiny home, be sure to weigh the pros and cons carefully and consider your own needs and lifestyle before making a decision.

Find your dream tiny home today at Snake River Tiny Homes. Their simple, turn-key process makes it easy to design, build and finance the perfect tiny house, or container home. To get started, schedule a call with one of their tiny home specialists. You will be glad you did. 


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