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Anchored Tiny Homes Brings Custom, Stick-Built Tiny Homes to the Market in an Effort to Relieve a Multi-Million Unit Shortage

There is a need for over 2 million homes in the U.S., and Anchored Tiny Homes presents an affordable, effective solution.

By Morgan Wood1851 Franchise Contributor
SPONSOREDUpdated 11:11AM 05/24/23

Between 2012 and 2022, a major gap formed between the number of single-family homes being constructed and the number of individual households forming — a 6.5 million unit difference. While this widely-accepted number slightly overstates the need, as many multi-family homes allow for both buying and renting, a more inclusive calculation still yields a 2.3 million unit shortage.

As housing prices continue to climb and inventory struggles to catch up to demand, many consumers are seeking alternative solutions that are both more practical and accessible. Anchored Tiny Homes, a custom, stick-built tiny home builder that specializes in accessory dwelling units (ADUs), has brought a practical, affordable solution to the market.

“This is a family business that we started in 2019. My dad has been a general contractor for 33 years now, so he’s built garages, sheds, custom homes…all kinds of things,” explained Colton Paulhus, CEO and co-founder of Anchored Tiny Homes. “The idea came when I saw an ad for tiny homes on wheels on Facebook. I actually went to my dad and asked if he thought we could build tiny homes. He said he didn’t see why not, so I threw a listing up on Facebook marketplace, and within three days, we had about 300 inquiries from people wanting tiny homes. That was when I knew there was potential in the market.”

While the company originally started with tiny homes on wheels, it pivoted to ADUs in 2021 after realizing the potential that exists in the space. 

Anchored Tiny Homes’ Specialization and the Perks of ADUs

With traditional housing becoming more expensive and increasingly out of reach for many demographics, alternative solutions are on the rise. Beyond standard tiny homes, rental properties and half-million-dollar homes are ADUs.

An ADU is “a secondary house or apartment that shares the building lot of a larger, primary home.” The terminology can be used to refer to a range of structures, including a guest house or two-level structure with both a garage and second-level living space. As the concept has grown in popularity, many state and local jurisdictions have begun to develop ADU legislation that presents a set of requirements for an ADU that will be deemed acceptable within the given community.

Because Anchored Tiny Homes focuses on custom, stick-built ADUs, the company is well-equipped to provide its customers with an ADU, or tiny home, that fits the unique needs of the buyer while catering to local jurisdictions and shaping the build to match well with any existing structures on the property.

Because ADUs are built on an existing piece of land, the process is often more affordable than the purchase of a brand new lot, and certainly more affordable than a new, standard-sized home, making the solution more accessible to the demographics that display the most need.

How Anchored Tiny Homes Is Solving the Crisis

Simply put, Anchored Tiny Homes is creating homes, effectively closing the gap between available homes and the number of individual households seeking housing. While this is applicable in many arenas, the company, for the most part, caters to two key demographics: investors and families.

“The primary consumers are people with aging parents or kids coming home from college,” Paulhus explained. “A lot of these people are left to choose between a $600,000 home and an ADU, and the ADU just makes sense. There are a lot of people doing a family compound type of thing — multi-generational living — to save money, especially in a lot of the less affordable states and cities.”

Given the current state of the market, many young professionals cannot afford to purchase a home independently, and the cost of assisted living is only climbing. With an ADU, a family unit can be reunited on a single piece of property, allowing an aging parent or adult child to have their own space and maintain independence without making an irresponsible or hard-to-maintain long-term investment.

When investors break into the ADU space, they are able to address both sides of the issue. 

“ADUs are also a great solution for the investor who wants to add cash flow to an existing rental property or build the unit in their own backyard to add rental income,” Paulhus added. “You’re adding value to your property.”

Investing in an ADU creates an opportunity to counteract any required mortgage or property-related payments. If an investor has a $7,000 monthly mortgage payment, for example, construction of an ADU on an existing property can bring in around $2,500 per month, which can largely go directly toward the pre-established mortgage rate.

“In that situation, it doesn’t have to be anything grandiose. The investor will probably build a one or two-bedroom unit,” Paulhus explained. “It’s not anything super big, and it’s really just going to help them with some supplemental income, along with creating more inventory amidst the housing shortage.”

Why Anchored Tiny Homes?

In addition to offering fully-customizable tiny homes, the Anchored Tiny Homes team delivers a white-glove service at an affordable price. The planning, design and construction of a tiny home does not have to be wildly expensive, and the company’s expertise and connections support clients throughout the entire process.

“There are a lot of benefits to that white-glove kind of service,” he said. “You don’t really have to worry about getting plans done, submitting for permits and finding a builder. We take care of it from front to back.”

And, with its expertise, the Anchored Tiny Homes team also brings passion to each project it takes on, viewing every single one as a stepping stone in the larger mission to solve the housing crisis nationwide.

“We saw a major need and had a tie to the industry, and now getting up and going to work every day feels incredible because we are solving family dynamics,” Paulhus said. “We’re supporting people in earning extra income or taking care of their elderly parents. I feel like we’re solving a major problem, and that gets me fired up to go to work every day.”

To learn more about Anchored Tiny Homes, visit  https://estatenvy.com/anchoredtinyhomes

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