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Millennials are obsessed with tiny homes, and the 3 reasons why highlight just how different they are from baby boomers

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Tiny houses symbolize the lifestyle gap between millennials and baby boomers.
I recently stayed at Think Big! A Tiny House Resort in the Catskills for three days, and the mother-daughter duo who run it pinpointed three reasons why millennials love tiny houses.
Tiny houses are more affordable than suburban mansions, offer a unique experience, and enable millennials to work remotely.
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Tiny houses are more than 200-square-foot dwellings on a set of wheels.

They’re also symbolic of some of the key differences between millennials and baby boomers. I experienced these differences firsthand when I recently visited Think Big! A Tiny House Resort in the Catskills and stayed in a 269-square-foot tiny house for three days.

The resort is run by mother-daughter duo Marjorie (who goes by Margie) and Melissa Juszczak. I asked them why they think millennials have fueled the growing tiny-house phenomenon, and their three answers made it clear just how different millennials are from their parents.

1. Millennials can actually afford tiny houses.

“People love tiny houses because the McMansion died,” Melissa told me. “Millennials can’t afford mansions.” Tiny houses, she added, are generally more affordable for millennials.

The suburban mansion is losing its spot as part of the American Dream, and it’s partly because they’re too expensive for millennials, who are financially behind, Business Insider previously reported. A 2016 Trulia study found that premiums paid for McMansions declined significantly in 85 of the country’s 100 biggest cities, according to Bloomberg.

As Margie, a baby boomer, pointed out, her generation “does houses in the suburbs, but the next generation is coming out of school with student loans.” Staggering student loan debt, coupled with a higher cost of living, is delaying millennials saving for a down payment.

It doesn’t help that first-time homebuyers today are likely to pay 39% more than first-time homebuyers did nearly 40 years ago. And only 13% of millennial renters across the US will be able to afford a traditional 20% down payment within the next five years, according to a new Apartment List survey.

The median listing price for homes in the US is $285,000, whereas the median cost of buying a tiny house is $59,884. Others spend anywhere from $10,000 to $30,000 building tiny houses.

2. Tiny houses are all about the experience.

But the McMansion is also seeing a decline because millennials have different homebuying priorities than baby boomers: They prefer convenience and quality over size, experts have told Business Insider. This ultimately boils down to experience.

Margie and Melissa both told me that for millennials, tiny houses are all about the experience. “Millennials aren’t tied to their house,” Margie said. Melissa added that millennials don’t want a life full of stuff. “Less is more,” she said.

Experience is so coveted among the generation that it’s become a new form of luxury. “The world we live in thinks the more money you throw at it, the more fancy materials, …read more

Source:: Business Insider

      

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