Market Outlook for Tiny Homes

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Competitive Analysis: Tiny Home Market

Montainer is one of the more popular entrants in the tiny home market. It offers a relatively low price point for container homes. According to its website, a base module in the form of a recycled and refurbished shipping container is only $65,000, well below the price of even the most inexpensive homes, and installation runs $10,000-$20,000. The homes can be located anywhere the customer has land and can secure a permit. "We determine exact installation costs for your site including connection to utilities whether you are [sic] access to power, city sewer and water or well and septic system. Solar panels are also an option that we provide." ("FAQ," 2016). The shipping containers are relatively Spartan, however and a more realistic target market may be individuals who want vacation homes or temporary office spaces although according to Montainer, "Montainer wants to sell its homes to mainstream buyers who otherwise could not afford to buy a house" (Davis 2015).

Tiny Home Builders produces tiny homes on wheels, enabling the owners to drive them anywhere. Unlike Montainer, the owners of these tiny homes do not even need to purchase a piece of property. This would make it less attractive to young families with children or stable jobs that need to be rooted in a particular town but would be suitable for empty nesters or people seeking a second home for outdoor adventures. The company heavily markets itself to hands-on, DIY types and even sells a book for people who want to build the homes themselves.

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Tumbleweed Houses similarly offer 'homes on wheels' that include amenities such as bathrooms that might be enjoyed by people who seek out mobile living but with greater comfort than can be provided by an RV. Humble Homes sells tiny house plans for the DIY-er who wishes to build homes him or herself.

Direct Competition

The most direct competition with Slice of Heaven & Associates would be that of Montainer, given that Montainer's structures are permanent and pre-fabricated, unlike the mobile offerings of other organizations. However, in comparison with Slice of Heaven, Montainer's structures are far more bare bones in nature. There is also no built-in community for Montainer residents even though the homes are stationary. For more affluent consumers who are simply seeking relief from the responsibilities of home ownership, Slice of Heaven offers the amenities of a fitness center and other elements comparable to high-end apartment or condominium life with greater privacy and at a fraction of the price. There is a lack of simultaneous social reinforcement if someone simply purchases a small piece of property to install a shipping crate.

The wheeled homes of Tiny Home Builders and Tumbleweed Houses offer the added asset of mobility but for some potential consumers this may not be necessary or even less desirable, as they may still want to live….....

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