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Tiny Homes vs. Micro Homes: Their Costs, Pros, and Cons in 2023

Tiny homes and micro homes are hot topics in real estate right now. And many people are wondering whether they can save money by buying a tiny home or micro home instead of a traditional one. In this post, we’ll answer all your questions about these types of living spaces to help you decide if they’re right for you.

What are Tiny Homes

A tiny home is a house that’s less than 400 square feet. They are often built on wheels, also known as THOWs or tiny houses on wheels. These homes can be moved around easily, and some people choose to live in them permanently. Over the past decade, tiny homes have become popular with millennials since they are affordable and easier to maintain than traditional houses.

According to tinyhomehub.com, minimalism and downsizing are some of the significant reasons why people prefer tiny houses. Tiny homeowners often claim that they feel more connected to nature because of their smaller size and lack of clutter found in most homes today. Some people also believe that small spaces help them focus better on what matters most in life—their family members or friends, which helps reduce stress levels exponentially.

People would want to live in such a small space for many reasons.

These include;

  • Lower Cost of Living
  • More Eco-friendly
  • Financial constraints
  • Fewer Distractions
  • Higher Quality of Life
  • Travel opportunities

Advantages of a Tiny Home

Tiny homes come with several benefits, such as;

  • Affordable
  • Easy to maintain and move
  • Smaller footprint
  • Lower utility bills, taxes, and insurance costs

Disadvantages of a Tiny Home

Despite the pros, tiny homes come with the following drawbacks.

  • Can be challenging for large families
  • A small footprint doesn’t allow a lot of personal storage or extra room

What are Micro Homes

Micro homes are the advancement of tiny homes whose size ranges from 400 to 800 square feet. They are similar to tiny houses built on a trailer frame or tiny home foundation.

They are usually used as guest rooms built from prefabricated materials or custom builds. Micros homes have an independent bathroom, porch, and kitchen and are fully-fledged houses apart from being small in size.

Advantages of a Micro Home

Micro homes are an excellent deal due to the following reasons.

  • Like tiny homes, a smaller size means less maintenance. The smaller the house, the less work you have to do. Fewer parts need to be replaced, and fewer things can break down. Because it’s so tiny, you can usually get away with doing some of your repairs at home, as there’s no need for expensive contractors or handypersons.
  • Lower cost of living. Though many costs are involved in building and maintaining these houses, overall, it will cost less. This is because they use less energy and water, which translates into lower utility bills.

Disadvantages of a Micro Home

The main cons of these houses are;

  • Problems with storage
  • Their laws keep on varying and sometimes are not clear

Can I get Financing for my Tiny or Micro Home?

Yes, you can get financing for a tiny or micro home. You can get a loan from a bank for certified tiny homes like ones built by Prairieland Tiny Homes. You can also get funding from private lenders.

In either case, it’s essential to do your research on the lender and find out if they have any special requirements before applying for the loan. If you decide to go with a private lender, make sure they are willing to work with homeowners who want to build their own homes rather than buy one already built.

Tiny and Micro House Builders

When you need to undertake tiny house building, there are many builders to choose from. For many individuals, a simple google search of “tiny or micro house builders near me.” However, whichever your choice will be, here are some things to consider.

  • Where does the tiny house builder’s location matter? It’s crucial to work with a builder who can ship nationwide.
  • Look up reviews online and see how long they’ve been in business before deciding whether to use them as your builder. You should also ask if anyone has used their services before and what they thought of them.
  • While some builders started building regular-sized homes, other builders specialize in space-saving design with all the amenities small living spaces provide. Make sure that whoever builds your home has experience in constructing tiny homes.


There is a big difference between tiny and micro homes. One of the significant differences is their sizes, with tiny being up to 400 square feet while micro homes can go up to 800 square feet.

Although a micro home offers more space than a tiny home, a tiny home can move and travel wherever family or work can be. However, both have similar advantages and disadvantages. And when it comes to deciding whether to build a tiny or micro home, your budget and preferences will play an integral part.

If you are thinking of a tiny home builder or looking to build your own with a tiny home shell, Prairieland Tiny Homes can help. Prairieland Tiny Houses specialize in an open concept, custom-designed interiors, spacious layouts, ample bathrooms & full-sized appliances, and also delivers nationwide.

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