Is it cheaper to build a tiny house on wheels or foundation?

The tiny house movement has been growing in popularity over the past decade as more people look for affordable and sustainable housing options. Tiny houses come in all shapes and sizes, but one of the first decisions that need to be made is whether to build the structure on a trailer with wheels or a permanent foundation.

Both options have their pros and cons when it comes to upfront costs as well as long-term expenses. Building on wheels allows for mobility and potentially lower permit costs, while a foundation provides more stability and may increase property value. Overall costs are also impacted by factors like construction materials, appliances, utilities, insurance and more.

Upfront Costs: Wheels vs. Foundation

The first major cost consideration for a tiny house build is the base structure itself. Tiny homes on wheels require a trailer, while foundation homes need a slab or pier foundation constructed.

Trailer Cost

For a tiny home on wheels, the trailer is generally one of the biggest upfront investments. Trailer costs can vary greatly depending on:

  • New vs. used – New trailers specifically designed for tiny homes typically range from $5,000-$8,000. Used trailers can sometimes be found for $1,000-$3,000.
  • Trailer length – Longer trailers cost more but provide more space. Expect to pay $1,000 or more per additional foot of length.
  • Axles – More axles distribute weight better but also add cost. Single axle trailers are cheapest.
  • Materials – Steel frame trailers are generally more durable than wood frame.
  • Special features – Options like gooseneck hitches, ramps and more add to the costs.

In summary, most new tiny house trailers run from $5,000 to $12,000 with used trailers costing a fraction of that price. But a used trailer also poses more risks like unknown maintenance history, repairs needed, durability and load capacity.

Foundation Cost

For tiny homes built on a foundation, the slab or pier foundation costs will factor into the budget instead of a trailer. Common foundation options include:

  • Slab foundation – Poured concrete slabs typically cost $4-$8 per square foot, so a 200 square foot tiny home would need $800-$1,600 for the slab.
  • Pier foundation – Concrete piers spaced 4-6 feet apart may range from $500-$2,000 total.
  • Pilings – Driven pilings average $100-$200 per piling, with 6-8 spaced 4-6 feet apart.
  • Stem wall – Poured concrete or block stem wall on compacted soil or gravel runs $10-$20 per square foot.

Foundation costs are mainly influenced by the soil conditions, materials used, accessibility, and labor rates in the area. Most basic tiny house foundations cost between $1,000-$3,000.

Frame Construction

The next step is building the frame on top of the trailer or foundation. Typical tiny house frames use:

  • Wood – The most affordable at $10-$25 per square foot DIY.
  • Steel – More durable but costs $25-$50 per square foot.

Framing for both wheeled and foundation tiny homes will cost $2,000-$10,000 for 100-300 square feet. Foundation-based frames may use slightly more materials due to added connections and anchoring.

Transport Costs

One extra cost for wheeled tiny homes is transporting the structure to your destination after completion. Hiring a house moving company to tow the tiny home can range from $1-$5 per mile depending on the distance. Self-towing with a heavy duty vehicle decreases the costs but requires specialized hauling equipment and skill.

Foundation-based tiny homes avoid all moving expenses since they are built on site.

Ongoing Costs: Wheels vs. Foundation

Aside from the upfront build expenses, there are ongoing costs of ownership to consider with a tiny house.

Site Rent, Mortgage, Property Taxes

Wheeled tiny homes typically require renting an RV site at a mobile home community, campground or private property. Average RV site rental rates range from $300 to $800 per month. Rent is usually the only ongoing site cost for a wheeled tiny house.

Foundation tiny homes can either be financed on private property you purchase, or a rented lot in certain mobile home communities. If financing land, costs include:

  • Mortgage payments
  • Property taxes
  • Home insurance

Overall, foundation tiny homes have higher ownership costs tied to the land itself.

Utility Costs

Since wheeled tiny homes are moveable, connecting to utilities like electricity, water and sewer will incur added fees at RV parks. This usually costs an extra $50-$150 monthly.

Foundation tiny homes have lower utility costs by tapping into existing property utilities or installing permanent connections.

Maintenance

Regular maintenance is crucial for both types of tiny houses. Wheeled tiny homes require:

  • Trailer maintenance like tire repairs, brake adjustments, rust prevention.
  • Repainting or staining the exterior more often due to movement and vibrations.
  • Additional leveling and adjustment as needed.

Foundation tiny homes have lower maintenance costs overall without the trailer upkeep. But foundation settling or cracks may also need some repairs.

Insurance

Insuring a tiny house is required, and premiums may cost:

  • Wheeled – $400 to $800 annually for RV insurance.
  • Foundation – $800 to $1,500 annually depending on the policy.

Again, foundation-based tiny houses often pay more for coverage than wheeled ones.

Appreciation

Tiny houses on foundations accrue appreciation value like regular homes, gaining equity over time. Wheeled tiny houses depreciate rapidly and should not be viewed as investments.

So for long term growth potential, foundation tiny homes deliver more value.

Example Tiny House Cost Breakdown

To clearly compare total costs, let’s look at a sample budget breakdown for a 200 square foot tiny house:

Wheels Costs

Cost Item Price
Trailer $8,000
Framing $4,000
Siding & Roofing $3,000
Windows & Doors $2,000
Insulation $500
Utilities Rough-in $2,000
Interior Finish $3,500
Appliances $2,000
Permits $1,000
Total Build Cost $26,000

With a $26,000 total tiny house construction cost plus land rent and utilities, the first year wheeled cost is about $30,000.

Foundation Costs

Cost Item Price
Foundation $1,500
Framing $5,000
Siding & Roofing $3,000
Windows & Doors $2,000
Insulation $500
Utilities Rough-in $2,000
Interior Finish $3,500
Appliances $2,000
Permits $1,000
Land – 50×100 Lot $30,000
Total Build & Land Cost $50,500

With the $50,500 foundation tiny house and land cost, plus mortgage, insurance, taxes, and utilities, the first year foundation cost is about $55,000.

Conclusion

In summary, tiny houses on wheels tend to be cheaper to build and have lower ongoing expenses compared to foundation tiny homes. Key factors to consider for costs include:

  • Wheeled tiny houses need a trailer, trucking costs, and RV site rent.
  • Foundation tiny houses require land purchase, a foundation build, and higher ownership costs.
  • Utility hookups, maintenance and insurance are also lower for wheeled tiny homes.
  • But foundation tiny houses gain appreciation over time and have lower moving costs.

For maximum affordability and flexibility, a tiny house built on wheels is generally the most budget-friendly option under $30,000. But foundation-based tiny homes offer more potential value at $55,000+, despite their higher upfront and ongoing costs.