Opportunities for Tiny House and EcoVillage Communities
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An overview of market trends, building options, and funding scenarios for developers of tiny house communities and EcoVillages. (May 30, 2015 Workshop at White Lotus Eco Retreat, Stanardsville, VA, USA)
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Opportunities for Tiny House and EcoVillage Communities
- 1. Openworld Villages www.openworldvillages.org Workshop on Micro-Communities of the Future Mark Frazier May 30, 2015
- 2. Tiny House Initiatives What are Tiny houses? — Designed for four season living — Typically, 200 to 400 square feet — Can be built permanently on site, or kept on wheels
- 3. EcoVillages in the US What are EcoVillages? — “Intentional Communities” formed for sustainable living — Typically, 30 – 300 full time residents — Emphase alternative energy, conservation, community gardens, sharing of tools/ equipment
- 4. What we’ll explore… 1. Why the movement is happening 2. Where it is heading 3. How can we act upon the opportunity?
- 5. 1. Why is it happening? Four key drivers – — Economic trends — Changing values — Technological shift — New business models
- 6. 1. Why is it happening? Economic Trends — Real estate market meltdown — Increasing job uncertainty for students — Mid-career turbulence — Retirees needing to downsize
- 7. 1. Why is it happening? Tiny House/EcoVillage response - — Save 50-80 percent on dwelling purchase price — Cut debt to manageable levels — Lower costs of utilities — Reduce maintenance — Access caregivers
- 8. 1. Why is it happening? Changing Values — People want more community connection — Trust is fading in government/ corporate “solutions” — Consciousness of environmental impacts is growing
- 9. 1. Why is this happening? Technological shifts — Plunging costs of alternative energy — Rise of microfarming — Cottage industry (desktop factories) — Freelance market growth (work anywhere) — Anytime/anywhere access to virtual learning and health resources
- 10. 1. Why is this happening? New business models — Contingent pledges (crowdfunding and “crowdmoves”) — AirBnb (revenues offset ownership costs) — Fractional ownership and Lease-to-Buy options (including investment partnerships for low-to-moderate income residents) — Owner associations (for self-provision of infrastructure and amenities)
- 11. 2. Where is it heading? Key trends — Tiny house and EcoVillage offerings are growing — Regulatory change is starting to happen — Demand for tiny houses and self-sufficient living should soar with the next market downturn — New land may be available
- 12. 2. Where is it heading? New kinds of dwellings
- 13. 2. Where is it heading? www.openworldvillages.org Sample layout for a “park model” tiny house
- 14. 2. Where is it heading? New kinds of dwellings
- 15. 2. Where is it heading? New kinds of dwellings (cont.) – turning shipping containers into dwellings www.openworldvillages.org
- 16. 2. Where is it heading? Moves to lift regulatory barriers — Many localities restrict or outlaw AirBnb — Zoning laws usually allow only part time “camping” (not full- time living) in tiny houses on wheels — Some localities prevent tiny houses from using rainwater, doing microfarming, and establishing “off grid” energy alternatives www.openworldvillages.org
- 17. 2. Where is it heading? Moves to lift regulatory barriers
- 18. 2. Where is it heading? Other trends: A likely big growth of tiny houses/ EcoVillages when the next downturn comes Opportunities for a “land grab” by Tiny House communities and EcoVillages as idle/ foreclosed properties increase
- 19. 2. Where is it heading? Make or Buy? — Build Your Own ($2K - $40K) — Or buy one ($10K - $100K)
- 20. 2. Where is it heading? Scenario for EcoVillages and tiny house comunities to spark turnarounds in economically troubled areas — Put together a package reforms favorable to EcoVillage and Tiny House Communities — Embark on crowdsourcing/crowdfunding campaigns to develop plans for sustainable communities — Gather contingent pledges for “crowdmoves” — Hold competitions in which communities offer policy reforms and land grants of idle sites
- 21. 2. Where is it heading? How the new tiny house communities can reduce fiscal strains upon local, state and national governments — Use contractual owners associations to maintain local infrastructure, services and amenities — Introduce time banks/hour exchanges to provide valued services — Offer low-income residents “SwapRent” partnerships in tiny house ventures – and shares in Community Land Trusts — For large land grant areas, hold auctions/tenders on the Hong Kong and Singapore model – and share proceeds with all residents in the wider community
- 22. 3. How we can act upon the opportunity Next steps for individuals/families — Visit tiny houses and/or EcoVillages – explore what types, sizes and amenities you want — Check whether you prefer a tiny house on your property – or at a new location — Compare costs under make-buy-customize scenarios — Decide whether you want to live on a part-time or full-time basis — Map revenue generating opportunities (with AirBnb)
- 23. 3. How we can act upon the opportunity Next steps for investors – map ways for Tiny Houses to pay for themselves — AirBnb rentals of tiny houses: $100-$150/night — Typical cost of financing a small “Park Model” tiny house on wheels: $400-700 per month — A tiny house can pay for itself if rented part-time via AirBnb for about six days/month — Depreciation advantages (tiny houses on wheels can be fully depreciated as rental vehicles over eight years)
- 24. Steps in Forming a Tiny House Community Next steps for community developers…