The Case for Buying a Small House

When I decided to write an article in defense ofthe available personal space for each family
the small house, it was hard to know where tomember, you might be able to afford to let one
start, because there are so many reasons why Iparent quit working full-time to stay home with
think small is beautiful when it comes to houses. Ithe kids. When you add the daycare costs you
freely admit that I love living in small houses - inwon't be paying, the smaller mortgage, and the
fact, my ideal abode would fit many people's ideamoney you save on the daily commute, you
of a tiny house. My previous home in Portlandcould find that you come out even - and your
was only 420 square feet, and for me, a singlekids won't be raised by strangers.
woman, it was perfect. My current home, which isAside from the initial affordability of a smaller
huge by comparison but still under 900 squarehome, you also save money each month when
feet, seems too big to me.you receive your utility bill. Smaller houses are
Now that you know my personal prejudicesmore efficient when it comes to heating and
towards smaller homes, I'll give you a fewcooling them than larger ones, even when the
reasons for my unusual preferences.smaller homes have less insulation and older
First, smaller homes are more affordable for thewindows. The idea of a "green" McMansion is an
average American worker. I just did a quickoxymoron - you cannot create a small
search through the real estate listings for theenvironmental footprint if you build a huge house.
Portland Oregon metropolitan area for all homesThe average cost to heat and cool a home with
for sale under $120,000. I chose that price rangeelectricity in the same real estate market
because the average annual wage in that area isdiscussed above is approximately 58 cents a
around $37,000 a year. Since home prices havesquare foot, per year. My tiny 420 square foot
risen much faster than wages, a single buyer inhouse cost an average of $20.30 a month to
the Portland area could only afford a 30-yearkeep it comfortable all year. That affordable 748
mortgage under $100,000 at current interestsquare foot home that is currently listed for
rates, but the median price for a home in the$119,000 will cost approximately $36.00 a month
area went up to $297,000 in May 2007. Yes, byto heat and cool. On the other hand, an 1800
my calculations, the average worker can afford 1square foot house, which some people consider
3 of the average house in Portland. But that"small," will have an average monthly heating and
doesn't mean that you have to do without acooling bill of $87.00. The utility bill can actually be
house altogether, as many people assume. Youhigh enough to make the home unaffordable even
aren't doomed to rent forever, if you're willing tofor a family with two working adults, when you
look at a smaller home.add this cost to the monthly mortgage.
Admittedly, you may still need to haggle a bit toBut money isn't everything in life, so let's look at a
get the price down to a level you can afford, andfew other reasons why I think small is beautiful
you may need to do some repairs once youwhen it comes to houses. First, small houses are
move in, but if owning your own home iseasy to decorate, and even to remodel, if you
important enough, you can do it, even inget the whim to make some changes. They're
high-priced areas. The least expensive house ineasy to sell, because there are far more people
the Portland real estate market on the day Iwho can afford a small house than a large one
write this is a 748 square feet two bedroom, 1(my tiny house was on the market for less than
bath home listed at $119,000. The seller notesa week before I accepted a full-price offer). They
that it needs some work, but it has a new roof,take up much less space on the lot, which means
new vinyl flooring, and new washer and dryera lot to a gardener like me. And if the house is
that come with the house. This may not fit yoursmall enough, and the city is encouraging
idea of a dream home, but putting moneycontractors to build on flag lots, you may be able
towards something you own is a lot moreto divide your lot and make enough money from
satisfying than spending money on rent, even ifthe sale to pay off the mortgage on your house.
you have to put up with less personal space andIf you're thinking about buying a house, consider
even (gasp!) share a bathroom with your spouse.looking at the small ones now available in your real
Even if you have two wage earners in the family,estate market. You might find one that fits your
buying a smaller house could still make sense,lifestyle, your budget, and your long-term financial
especially if you have a child or two. By reducinggoals.