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If you've been trending the internet lately, you will notice that tiny homes are becoming a thing. The reason for this stems from the idea of affordability. Some cities, particularly San Francisco, LA, NYC, and Seattle are seeing an increase in housing prices and rent. The reason for this all stems down to supply and demand. You see, a lot of people want to live in certain places so the demand for housing goes up. When demand goes up but supply doesn't, the price goes up. But price isn't the real issue but rather just a symptom of the real issue which is a shortage on housing. In normal circumstances, an increase in demand can be solved with an increase in supply. However, some things may keep the supply of housing from being met such as height limits, urban growth boundaries, preserved areas, and otherwise faulty zoning ordinances.
In cities experiencing a shortage of housing, tiny homes are one of many solutions. However, several cities have minimum area ordinances which keep houses from being built below a certain area. For example, Denver city code prohibits habitable rooms from having an area of less than 70 sq feet or less than 7 feet in any horizontal dimension (except for kitchens). But Denver is starting to see an uptick in rent and housing prices as people move there and housing struggles to keep up.
https://www.denvergov.org/content/d...and-development/zoning/other-regulations.html
Tiny homes are really not the answer. The answer is higher density housing like more high rises. A high rise can house exponentially more people in given area than tiny homes.
That said, I am fine with a tiny homes, I just don't think it is a solution to the housing crisis in high demand areas.