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Cheddar: With High Mortgage Rates, Is It Time to Consider a Tiny Home?

Colton Paulhus, co-founder of ADU franchise Anchored Tiny Homes, shares some insight into why creative solutions may be key to overcoming housing shortages and affordability.

Anchored Tiny Homes co-founder and CEO Colton Paulhus recently spoke with Cheddar about the impact of high mortgage rates and low inventory on the housing market, and why it may be time to get creative and consider a tiny home.

“We build accessory dwelling units (ADUs) and what we’ve been seeing is that a lot of people are being priced out of the market right now,” Paulhus said. “For first-time home buyers in particular, there is a big barrier of entry with higher interest rates and the cost of housing. A lot of people are coming to us to help build ADUs on their friends’ and families' properties so they can get into the market easier.”

Anchored Tiny Homes constructs its ADUs onsite, offering a range of design options — from standard floor plans to fully customized solutions — that cater to the diverse needs and preferences of its clients. By adopting a stick-built approach rather than prefabrication, Anchored Tiny Homes ensures that each ADU fits seamlessly into its intended environment, providing an effective solution for adding living space without the complications associated with traditional construction methods.

With this strategy, the ADU franchise offers a path to financial freedom for homeowners by allowing them to earn rental income while also addressing the broader issue of housing shortages and affordability.

“We all want to see mortgage rates go down, but [they] probably won’t drop in the immediate future,” said Paulhus. “So getting creative around housing solutions is the way to do it.”

Anchored Tiny Homes is currently the only ADU franchise on the market. Last year, Anchored Tiny Homes saw significant franchise expansion, selling 61 total territories and breaking into key markets like Oregon, Rhode Island, Utah and Texas. 

Watch the full interview here

To learn more about franchising with Anchored Tiny Homes, visit