An overview of market trends, building options, and funding scenarios for developers of tiny house communities and EcoVillages. (May 30, 2015 Workshop at White Lotus Eco Retreat, Stanardsville, VA, USA)
2. Tiny House Initiatives
What are Tiny
houses?
— Designed for
four season
living
— Typically, 200
to 400 square
feet
— Can be built
permanently
on site, or
kept on
wheels
3. EcoVillages in the US
What are EcoVillages?
— “Intentional
Communities”
formed for
sustainable living
— Typically, 30 – 300
full time residents
— Emphase alternative
energy, conservation,
community gardens,
sharing of tools/
equipment
4. What we’ll explore…
1. Why the movement is
happening
2. Where it is heading
3. How can we act upon the
opportunity?
5. 1. Why is it happening?
Four key drivers –
— Economic trends
— Changing values
— Technological shift
— New business models
6. 1. Why is it happening?
Economic Trends
— Real estate market meltdown
— Increasing job uncertainty for
students
— Mid-career turbulence
— Retirees needing to downsize
7. 1. Why is it happening?
Tiny House/EcoVillage response -
— Save 50-80 percent on dwelling purchase price
— Cut debt to manageable levels
— Lower costs of utilities
— Reduce maintenance
— Access caregivers
8. 1. Why is it happening?
Changing Values
— People want more community
connection
— Trust is fading in government/
corporate “solutions”
— Consciousness of environmental
impacts is growing
9. 1. Why is this happening?
Technological shifts
— Plunging costs of alternative energy
— Rise of microfarming
— Cottage industry (desktop factories)
— Freelance market growth (work
anywhere)
— Anytime/anywhere access to virtual
learning and health resources
10. 1. Why is this happening?
New business models
— Contingent pledges (crowdfunding and
“crowdmoves”)
— AirBnb (revenues offset ownership costs)
— Fractional ownership and Lease-to-Buy
options (including investment partnerships
for low-to-moderate income residents)
— Owner associations (for self-provision of
infrastructure and amenities)
11. 2. Where is it heading?
Key trends
— Tiny house and EcoVillage offerings are growing
— Regulatory change is starting to happen
— Demand for tiny houses and self-sufficient living
should soar with the next market downturn
— New land may be available
12. 2. Where is it heading?
New kinds of dwellings
13. 2. Where is it heading?
www.openworldvillages.org
Sample layout for a
“park model” tiny house
14. 2. Where is it heading?
New kinds of dwellings
15. 2. Where is it heading?
New kinds of dwellings (cont.) – turning shipping
containers into dwellings
www.openworldvillages.org
16. 2. Where is it heading?
Moves to lift regulatory barriers
— Many localities restrict or outlaw AirBnb
— Zoning laws usually allow only part time “camping” (not full-
time living) in tiny houses on wheels
— Some localities prevent tiny houses from using rainwater, doing
microfarming, and establishing “off grid” energy alternatives
www.openworldvillages.org
17. 2. Where is it heading?
Moves to lift regulatory barriers
18. 2. Where is it heading?
Other trends:
A likely big growth of tiny houses/
EcoVillages when the next downturn comes
Opportunities for a “land grab” by Tiny
House communities and EcoVillages as idle/
foreclosed properties increase
19. 2. Where is it heading?
Make or Buy?
— Build Your Own ($2K - $40K)
— Or buy one ($10K - $100K)
20. 2. Where is it heading?
Scenario for EcoVillages and tiny house comunities
to spark turnarounds in economically troubled
areas
— Put together a package reforms favorable to EcoVillage
and Tiny House Communities
— Embark on crowdsourcing/crowdfunding campaigns to
develop plans for sustainable communities
— Gather contingent pledges for “crowdmoves”
— Hold competitions in which communities offer policy
reforms and land grants of idle sites
21. 2. Where is it heading?
How the new tiny house communities can reduce fiscal
strains upon local, state and national governments
— Use contractual owners associations to maintain local
infrastructure, services and amenities
— Introduce time banks/hour exchanges to provide valued
services
— Offer low-income residents “SwapRent” partnerships in tiny
house ventures – and shares in Community Land Trusts
— For large land grant areas, hold auctions/tenders on the Hong
Kong and Singapore model – and share proceeds with all
residents in the wider community
22. 3. How we can act upon
the opportunity
Next steps for individuals/families
— Visit tiny houses and/or EcoVillages – explore what types,
sizes and amenities you want
— Check whether you prefer a tiny house on your property – or
at a new location
— Compare costs under make-buy-customize scenarios
— Decide whether you want to live on a part-time or full-time
basis
— Map revenue generating opportunities (with AirBnb)
23. 3. How we can act upon
the opportunity
Next steps for investors – map ways for Tiny
Houses to pay for themselves
— AirBnb rentals of tiny houses: $100-$150/night
— Typical cost of financing a small “Park Model” tiny house
on wheels: $400-700 per month
— A tiny house can pay for itself if rented part-time via
AirBnb for about six days/month
— Depreciation advantages (tiny houses on wheels can be
fully depreciated as rental vehicles over eight years)
24. Steps in Forming a Tiny
House Community
Next steps for community developers…