Walmart is stirring the housing market by introducing a mini, modular house that sells for $15,900 only. These small, extendable structures are meant to be inexpensive and quick to put up appealing to the current housing gap. With cost of housing rising steeply in the United States, Walmart is venturing into new competing territory, alongside other players like Amazon, offering a trend for tiny dwellings.
What does the Walmart Mini home offer?
Walmart’s mini home is manufactured by Chery Industrial, a New York-based storage solutions company. It’s a prefabricated structure measuring 5.8 by 6 meters (about 19 by 20 feet). The home arrives on a flatbed truck and needs a forklift for unloading due to its weight and size. Once set up, it offers enough space for a small bedroom, living room, bathroom, dining room, and kitchen.
- Expandable structure: The home can be expanded from a flat-packed state, making it versatile and easier to transport.
- Unfurnished and appliance-free: Buyers will need to furnish and add appliances to the home, providing customization opportunities but adding extra costs.
While it’s simple and practical, it’s important to note that the home does not come with land, and installation requires additional steps like pouring a concrete foundation for stability.
Why are people choosing tiny homes?
The high cost of traditional housing, driven by shortages and inflation, has led many Americans to explore alternative living solutions. Tiny homes have become popular for people looking to downsize, reduce their carbon footprint, or find a more affordable way to own property. Prefabricated homes, like Walmart’s offering, provide a lower entry cost into the housing market.
- Cost savings: The initial price of $15,900 makes it significantly cheaper than traditional housing.
- Flexibility: These homes are perfect for people who need additional space on their property or are looking to live more minimally.
- Quick setup: Prefabricated homes are faster to install than traditional houses, making them attractive for those needing housing quickly.
How does Walmart compare to Amazon’s tiny homes?
Amazon also started listing similar prefabricated homes earlier this year, although the options have been more limited in availability. Like Walmart, Amazon’s listings feature expandable prefab homes from Chery Industrial, but pricing can vary. In one example, Amazon listed a similar home for $20,000. Both companies are catering to the growing demand for affordable housing solutions, but Walmart’s price point and availability give it an edge in reaching a wider audience.
- Price comparison: Walmart’s $15,900 mini home is currently cheaper than Amazon’s similar offering, making it more attractive to budget-conscious buyers.
- Delivery and setup: Both require specialized equipment like forklifts for unloading, and additional costs for land and foundation work.
Things to Consider Before Buying a Mini Home
Before jumping into purchasing one of Walmart’s mini homes, there are several factors you should take into account:
- Land ownership: The home doesn’t come with land, so you’ll need a place to install it.
- Foundation costs: For stability, the manufacturer recommends pouring concrete on the legs, which adds to the overall cost.
- Additional setup costs: You’ll need to budget for things like furnishing, appliances, and utility hookups, which aren’t included in the base price.
These mini homes offer a unique solution for certain buyers, but understanding the total cost of ownership is essential before making a purchase.
Why tiny homes are growing in popularity
In recent years, smaller housing units known as tiny homes have attracted attention since they are viewed as a more affordable investment option in a saturated housing market. It brings flexibility, movability, and environmental consciousness to people who wish to embrace a simpler and cheaper way of living. These residences can be used either as the main house, holiday accommodation, or addition to an existing property, fulfilling needs that are often hard to get in normal housing.
Walmart aims to strengthen her position in the market for tiny houses by introducing affordable yet practical expanded prefabricated dwellings that are designed for different groups of customers from those seeking to ‘clean up’ their military families to those in need of instant housing.
