Published by FOX Business | July 24, 2024
Tiny homes can range between 300 and 750 square feet
The housing affordability crisis that continues to trouble would-be homebuyers is sparking an increase in demand for tiny homes.
In response to this demand for more affordable properties, an innovative tiny home community called Mustard Seed Village emerged in Austin, Texas, last year with Amplify Credit Union playing a critical role in its development. Within the year, the village had already reached full occupancy.
Amplify Credit Union CEO Kendall Garrison told FOX Business that he sees the community as an opportunity for people to save more money for a down payment so they can move into homeownership faster and build up their equity.
That’s the main reason why Garrison was eager to provide the lending to make the community a reality, and help renters who are faced with high housing costs and mortgage rates that are still hovering near 7%.
“One of the things that’s really well-known, is that the median net worth of a homeowner is 40 times greater than that of a non-homeowner,” Garrison said. “If we can help people on the path to housing, whether it’s their first house or a move-up house, that’s really what our business model is all about.”
ACU provides fee-free and digital-first banking and lending services to more than 50,000 members.
The Mustard Seed community has 28 tiny homes, each offering two bedrooms and a bathroom. The rent for each is capped at $1,375 per month. While there is no proper definition for a tiny home, Garrison said they can range between 300 and 750 square feet.
These tiny homes are a great way to “get the ball rolling,” according to Garrison.
This is especially true in Austin, where housing affordability has been difficult. In recent years, especially when the area became a pandemic hotspot, Garrison has seen plenty of people that have been priced out of the market.
