Why the Tiny Home Trend Didn’t Last — and What It Can Teach Us About Future Investments
You probably remember things in your life that seemed very trendy and necessary a few decades ago. Now that time has passed — and you probably can’t find many of those things anymore — you question just how much you needed them in the first place.
Read Next: Is Barbara Corcoran Right About the Housing Market?
Try This: Become a Real Estate Investor For Just $1K Using This Bezos-Backed Startup
It looks like tiny homes may be seeing the same fate. The trend that seemed romantic, economical and good for the environment seems to have lost its way. Once touted as a great way to save money on housing costs, tiny homes have waned in popularity. In fact, some are already proclaiming the death of the tiny home trend.
So what happened?
Why Didn’t the Trend Last?
It turns out that, in many cases, the owners of the tiny homes realized that space is important for living.
Tiny homes vary in size, but one way to define them is houses in which all the space is used efficiently and nothing is lacking, according to Wired. Here’s a more technical definition: “A structure taking up no more than 600 square feet, with permanent provisions for living, sleeping, eating, cooking, and sanitation.”
While tiny homes looked great on social media and offered a way to buy a home more affordably, they also came with great challenges. Most people know how difficult it can be to live in a tiny space with family members — just think about vacation experiences in hotel rooms.
Furthermore, the COVID-19 pandemic left many families stuck in their houses, which got them thinking about the need for more space. Tiny homes certainly didn’t fit the bill.
Discover More: Here’s When To Buy a New House, According to Kevin O’Leary
What Can We Learn About Future Investments?
However, there are some lessons to be learned from the tiny home trend that can help us with future investments. First, it’s not always wise to follow the latest trend. They don’t always have good staying power.
Second, consider mistakes as opportunities for innovation and learning — including those from the tiny home trend. While the tiny home trend didn’t last, there were valuable concepts from it that we can use. For one, according to Debowsky Design Group, tiny homes capitalized on the idea of “less being more.” That is an idea we can implement with our investments.
A third lesson is to be careful with peer pressure. Just because you see lots of people posting on social media and bragging about something doesn’t mean it’s necessarily a good investment for you. Always do your due diligence and research before hopping on the next big thing or investment.
More From GOBankingRates
Barbara Corcoran: 3 Cities To Invest in Real Estate Now Before Prices Skyrocket
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Why the Tiny Home Trend Didn’t Last — and What It Can Teach Us About Future Investments
