Property prices are skyrocketing, and many people are rethinking how much property they need to build a home. If you’re on the fence about things and aren’t sure if buying a smaller property is worth it or if you can afford even the smallest plot of land possible: you’re not alone! Developers and homebuyers alike are opening their minds to smaller properties: here’ what you need to know.
What’s the Average Plot Size?
The average property size has been shrinking for years. However, in the last ten years, the average new property size has dropped by 2,000 square feet while the cost of properties has skyrocketed. This means that sellers and developers are getting more bang for their buck, and if you own a lot of lands, developing it and selling it as several homes could be very lucrative for you.
The average house plot size currently sits under 9,000 square feet, which is just above a fifth of an acre. This amount of land isn’t huge but can fit a well-sized two-story home if need be.
What Type of Home Do You Want to Build?
What size lot is needed to build a house doesn’t matter as much as what type of home you’re trying to build on it. Do you want to create duplexes, or are you looking at creating a huge single-family home? Try to consider the options, and look at which type of property would work for you. The land required to build a house depends on how much home you’re looking to develop.
Is This Property For You or Profit
When creating a home, it’s a good idea to consider if the property you’re building is going to be for personal use or if you’re selling it for profit. If you’re making it for yourself, you can be a little less money-centered besides your budget. But, on the other hand, if you’re using these properties for rentals, you should be able to fit more residences on a property so that you can create your small apartment complex.
If you’re creating a property solely to sell, though, be careful! A lot of money goes into creating a house and ensuring it’s up to code. If the house is small enough, it might not be worth building a home to try and resell.
Is There a Minimum Amount of Land Necessary?
There absolutely is a minimum land size to build a house! It’s surprisingly small, with the smallest homes allowed sitting at 120 square feet and the smallest plot of land they can be on having to be no less than 320 square feet. This is a tiny amount of space: keep in mind that the average parking space sits at 180 square feet: which means you might have a home smaller than the space needed to park a car in front of it. Tiny house living is very popular, but most places that are this tiny are apartments and condos in larger cities. If you try to sell or rent a property this small in a rural area, you may have a far more difficult time.
How Much Does It Affect Value?
A spacious and well-kept lawn can add value to a home by five to ten percent, depending on the location. This means that ensuring your property has a big lawn and enough room for buyers to envision themselves outdoors can be a worthwhile endeavor. If you’re building for yourself and you don’t need a yard, though, you don’t have to worry about paying extra for the land you don’t need.
Tiny House Living Isn’t for Everyone.
Although you may think that you can handle a smaller home or property, it isn’t necessarily for everyone. Try to find a piece of land that suits your needs while still being affordable, and you can build a home anywhere. However, there is a point where cost undermines utility, so ensure that you don’t buy a property that you won’t be able to do anything with.