{"id":12565,"date":"2026-03-10T11:30:00","date_gmt":"2026-03-10T18:30:00","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=12565"},"modified":"2026-03-10T10:33:09","modified_gmt":"2026-03-10T17:33:09","slug":"rental-trends-adu-tiny-house-efficiency-apartment","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/rental-trends-adu-tiny-house-efficiency-apartment\/","title":{"rendered":"Rental Trends: Living Large in a Tiny House or Efficiency Apartment"},"content":{"rendered":"\n
\"Rental<\/figure>\n\n\n\n

If you do a web search for mini home, you\u2019ll typically come across a cornucopia of information for the Google Home Mini device. Although useful in any type of home, it doesn\u2019t lend much information about the current trend for living in small spaces.<\/p>\n\n\n\n

From treehouses to yurts, there are many unique small spaces to rent for a vacation. But these days, small quirky places are hot property for the rental market in general. <\/p>\n\n\n\n

For the investor, small rental spaces could make a big impact in the coming years. For renters, it means easing the housing shortage and paying less in rent.   <\/p>\n\n\n\n

Tiny House Rental Movement<\/h2>\n\n\n\n

Throughout history, small living quarters were commonplace. In the US, even the large manufactured and mobile homes<\/a> of today had humble beginnings with traveling nomads in small caravans to small dwellings brought in for military housing.<\/p>\n\n\n\n

In the US, housing 100 years ago had a much smaller footprint. The average floor area per person was 179 to 284 sq ft<\/a>. Fast-forward and in 2025 the average American home was 2,176 sq ft<\/a>, making the per-person area a whopping 702 sq ft. Although apartment sizes are shrinking <\/a>slightly on the East and West coasts, they still average 887 sq ft, and most are individually occupied. <\/p>\n\n\n\n

So if space is available to rent at approximately 900 sq ft or more per person on average across the US, why would people opt to go small? How small are we talking, and where is this tiny home movement taking us? <\/p>\n\n\n\n

Why Live or Invest in Tiny Homes<\/h2>\n\n\n\n

Either out of financial necessity, urban housing shortage, population changes, and\/or based on lifestyle choices, tiny living is on-trend. Globally, in very populated areas, it\u2019s not unheard of to rent spaces the size of a closet. New York and San Francisco have been known to market rental units under 100 sq ft regularly. <\/p>\n\n\n\n

Financial Necessity<\/h3>\n\n\n\n

From tiny houses to studio apartments, tiny homes are less expensive than their larger counterparts. With housing prices on the rise while wages stay static, purchasing a home is out of reach for much of the population<\/a>, leaving renting as the alternative. With that, rental market rates continue to rise, and renters are turning to more affordable rentals, which often means going small.  <\/p>\n\n\n\n

Urban Housing Shortage<\/h3>\n\n\n\n

Affordable housing is often scarcest in populated urban areas. The closer to a metropolitan city, the greater the demand for housing.  <\/p>\n\n\n\n

Fortunately, many large cities are reworking and easing regulations to allow for renovating a single-family residence to create rentable accommodations and\/or add on units (see below types). <\/p>\n\n\n\n

Population Changes<\/h3>\n\n\n\n

The household size in the US has continually been on the decline, and in the 21st century. While it has increased somewhat in recent years, one-person households made up nearly 30% of all households<\/a> in 2025. Additionally, households with 4 or more persons have nearly halved since the 1960s. <\/p>\n\n\n\n

Translation: the fewer persons in a household, the smaller the needed housing space.  <\/p>\n\n\n\n

Lifestyle Choices<\/h3>\n\n\n\n

Setting aside any financial constraints and housing availability concerns, some opt for small living spaces for personal reasons, such as: <\/p>\n\n\n\n