As people near the age of retirement they tend to think how they’d like to spend their golden years. Some of those people are deciding to keep some extra spending cash in their pockets by downsizing from traditional homes or apartments into tiny homes, writes MarketWatch reporter Catey Hill.
For older Americans, many on fixed incomes that may not heavily supplement their Social Security, the cost of living is of utmost importance. Nearly 60% of workers 55 and older have saved less than $100,000 for retirement, while 24% have saved less than $1,000, according to the nonprofit Employee Benefit Research Institute. Both figures are much lower than financial advisers recommend.
Tiny houses usually cost between $10,000 and $100,000 to buy or build, while the average U.S. home costs nearly $200,000. Tiny apartments tend to cost much less than larger rental units in the same area.