Growing Tiny Houses: Motivations and Opportunities for Expansion Through Niche Markets

Abstract: The increase in population and urbanization has led to widespread concern about the resulting volume of consumption. This is especially problematic in the housing market, where home size continues to grow. In the United States the average size of a single-family home has doubled since 1950, leading to a profound environmental impact. This paper will seek to address the problem of overconsumption by considering the benefits of intentionally downsizing in favour of smaller homes that still provide a good quality of life. Tiny houses have a demonstrably reduced impact on the environment as compared to large conventional houses. This paper works to improve understanding of tiny housing motivations and challenges before considering the application of niche markets to the tiny housing sector in hopes of expanding the trend. Through a popular media review and eleven interviews with members of the North American tiny housing community, this study finds that the primary motivations for involvement include interest in a simpler life, sustainability and environmentalism, cost, freedom and mobility, a sense of community and an interest in design, while the primary challenges are zoning and legal aspects, preconceptions, and occasionally lack of financing. Additionally, several potential niche markets were defined including young adults, students, retirees, seniors, individuals needing extra space, and tiny housing communities. Each of these niche markets was evaluated against a list of niche analysis functions: improved social support networks, improved knowledge and performance, articulation and adjustment of expectations, legitimization/stabilization, and resource mobilization. Through this niche function analysis, retirees and tiny housing communities were assessed to have the strongest potential of success. Niche function analysis was then carried out in a case study of student housing in Lund, Sweden, where the local student housing foundation has been working to establish compact housing to meet the high demand for student rooms. Completion of a niche function analysis determined that this project has a strong possibility of success due to the assistance of the student housing foundation in completing the niche functions.