Catastrophe-proof and dirt cheap — Home Depot's $44,000 DIY tiny house underscores America's obsession with small living

• Home Depot is selling a tiny house frame for $44,000.
• In tight real estate markets, tiny homes are becoming an increasingly attractive living option.
• But outside the US, like in Germany, prefab tiny homes also come with financial risks.

For just $44,000, the US hardware store chain Home Depot is now selling mini houses online. In the United States, they are the answer to several crises. In Germany, the trend towards tiny houses is associated with financial risks due to the peculiarities of German law.

It may only be 50 square meters in size, but this small house is impressive: In the so-called "Getaway Pad," residents live in a light-filled bedroom, a daylight bathroom, and a kitchen-living room. A spiral staircase on the exterior wall leads to the rooftop terrace with seating, and there is even a mini kitchenette.

The house is not the individual work of an architect. The US hardware store chain Home Depot is now selling it in bulk, with just a click through their own online shop. The mini house is priced at just $43,832, which is around 41,000 euros, and monthly installment payments are also possible. Curbside delivery is included.

The product suddenly turns a big hardware store chain into a house seller — albeit only in the category of so-called "tiny houses." These are houses that make the most of minimal space.

However, residents hardly have to compromise. These mini-houses have a bedroom, a kitchen, and a private bathroom.

And when it comes to safety, these small residences are said to be on par with regular single-family homes. According to Home Depot, the "Getaway Pad" is earthquake-proof, storm-proof, tornado-proof, and can "survive the challenges of Mother Nature."

In the United States, a real movement has emerged in recent years, advocating for living in small houses. Owners are either concerned about the environment or simply want to keep living costs low. And it seems that Americans are also thrilled about the hardware store house. Those who order now have to wait several weeks for delivery.

The low costs, in particular, attract many people. Rents and mortgage rates have recently skyrocketed. And even though property prices in the US have experienced a small dip, the cost of an average American house is still just below the record prices from August of last year.

The value of a residential building across all types of construction is currently around $339,000, according to data from the US real estate broker Zillow. Prior to the start of the COVID-19 pandemic, it was only $243,000. Experts predict another five percent increase over the course of the year.

In states with particularly tight real estate markets, tiny houses are becoming the only affordable alternative. Even the government has recognized this: California is currently investing around $30 million in the construction of 1,200 small houses to combat homelessness. In that state, more than 170,000 people are living on the streets because they can no longer afford accommodation.

In social networks, users are already exchanging information about the cheapest land prices in the US to find a spot for their inexpensive little house. Communities in rural states like Oklahoma are even offering relocation bonuses of over $10,000 for outsiders who settle there.

Other buyers, on the other hand, smell a business opportunity. "How easy would it be to have three of them on the same plot and simply rent them out?" writes one user on the Twitter microblogging service.

However, the low price of the "Getaway Pad" comes with a catch, as revealed in the fine print. To turn it into a proper house, buyers have to dig deeper into their pockets. Home Depot is only selling the steel frame kit for around $44,000.

If buyers want to install doors, windows, or the appropriate toilet, they have to pay extra - not to mention furniture. And if buyers don't want to assemble the kit themselves following the IKEA style instructions, they also have to hire craftsmen.

Furthermore, the house is designed to be built on a concrete slab. So the buyer will likely need to spend several thousand more getting the ground prepped. Meanwhile, there are now also tiny houses on wheels. And depending on the place of residence, buyers may also need to apply for appropriate permits to comply with local building regulations.

The hardware store chain points out the design flexibility for potential buyers due to the rudimentary equipment. "You have complete freedom to design and furnish your house in a unique way - according to your spatial needs, budget, and personal style," says Home Depot. At least the frame has punched holes for "easier installation of electrical and plumbing lines." However, they are not included in the building kit.

Excessive regulations and requirements hinder tiny houses in Germany

Nevertheless, the demand for tiny houses is also growing in Germany. Specialized construction companies report an annual increase in demand of about one-third. However, buying with just a click as in the US could quickly become a financial risk here.

The blame lies with the excessive regulations in Germany. Fulfilling the requirements depends not only on the place of residence but also on the size, construction type, specific location, and duration of use of the tiny house.

"It is easier to build your tiny house according to the individual building regulations of the selected property than to first build the tiny house and then look for a plot of land," explains the German Tiny House Association.

German building regulations are far from simple. Local requirements, such as the development plan, determine how a new house must be designed to fit into the surroundings. Furthermore, it is often generally expensive to find a suitable place for one's own tiny house.

In the US, on the other hand, the possibilities for buying a house with just a click seem to have no limits. In addition to the "Getaway Pad," Home Depot currently offers even cheaper, albeit smaller, models.

A wooden bungalow called "Sea Breeze," measuring 34 square meters, costs around $23,600. And the model "Phoenix," with an area of around 16 square meters and its own bathroom, is already available for $12,500. However, buyers should be sure because the houses cannot be exchanged.