IMPORTANT 2021 UPDATE!

Consider this our official COVID 19 update, which until this point, we have not had to even contemplate since 2020 was more or less an average year for us, and Covid didn’t really affect sales or production all that much. In fact, the tiny house industry as a whole saw demand absolutely spike!

The main hurdles we had to face last year were long trailer and window lead times. Now that it is 2021, these challenges still exist on a slightly exasperated level, but we have even more hurdles to overcome.

Since summer of 2020, we have seen material prices go through the roof! Framing lumber in particular has increased over 100%. Steel prices have increased, affecting trailer and metal roofing/siding prices. Plywood and cabinets have gone up. Even little things like hardware are slightly higher than a year ago. These things are out of our control and based on the laws of economics. Supply has been low, demand has been high!

The slightly good news is that tiny houses aren’t very big and don’t require nearly as much materials as normal houses. That, and materials usually account for about 50% of the build (labor, overhead, & profit comprising the other 50%). So, it’s not like our builds will see massive cost increases, but the bad news is that material prices have yet to stabilize and continue to rise. It will likely take another economic recession to bring prices back down to where they were pre-March 2020.

In addition to higher material costs, we are also facing material shortages, in particular, ANY kind of cedar siding product, be it t&g, rustic channel, or lap. We are working with our suppliers to find suitable alternatives, but what this means for anyone wanting real wood siding on your house, expect 1 of 3 things: 1) we might still be able to find some small batches of cedar here and there, but expect to pay exorbitant prices for it! 2) we will use a cedar alternative such as Doug Fir, Hemlock, or a heat treated product such as Thermory. All of these options will cost more than cedar did a year ago, but still not as much as trying to buy cedar today! 3) change the design to use non stain grade wood products. Painted LP smart side is a good example. Corrugated, pro panel, or standing seam metal are all affordable options as well (very low maintenance too!)

Material shortages on the interior side of things is far less pronounced, but be aware some items like t&g pine are starting to show either large price increases or low supply. Materials like drywall or birch panels will remain most abundant and affordable.

Two other topics I want to address for anyone thinking of hiring us- parking and financing. I have been getting a ton of inquiries lately, and almost all of them are contingent upon parking spaces or financing or both!

I don’t want to sound mean, but I am a tiny house builder-not a banker, not a realtor. The company is gearing up to not only build lots of cool houses this calendar year, but also construct a new facility and get relocated to it. This has been a long time coming, and is absolutely essential to the company”s success in the next 5+ years. All of my free time is tied up in the planning process of this endeavor. I simply do not have the time to address such inquiries. There are much better resources for finding parking than I could advise you with anyways. Here is one such starting point.

Financing remains a huge hurdle. I wish I had better answers, but I don’t. We were on track to get setup with Liberty Bank of Utah who does provide tiny house specific loans. However, their loans are setup as RV type loans that require the product to be completed before funds are released. This puts the financial burden on the builder to float the cost of the build til it is complete.

Most builders I know, myself included, just don’t have this kind of capital or line of credit floating around to do this. We are accustomed to more of a construction loan setting with a 25% deposit, 25% draws in the middle, and the final 25% on completion. If you have a friend or family member willing to float you a short term bridge loan, then Liberty Bank might still be a good option. Otherwise, read over our financing page if you haven’t already.

So to recap all of this, please know ALL projects are going to cost more than usual due to high material prices. I cannot answer questions about parking or financing, so please refrain from contacting us until you have these issues resolved on your own.

I wish I could help everyone more, but this new shop is going to take priority this year. Thanks for your understanding and patience!

-Greg

Owner, Rocky Mountain Tiny Houses