Not everything is big in Texas: Tiny houses seem to be popular because of their affordability.
“Nationwide, new construction has become smaller in an effort to create more affordable options for home buyers,” according to the Realtor.com® Texas real estate report.
Over the past five years, there has been a national reduction in home size from a median of 2,112 square feet to 2,035 square feet, or 3.6% less square footage.
But that little trend is even more pronounced in the Lone Star State, where big open spaces, big hats, and big cities are equated with big house living.
In 2020, the average square footage of a newly constructed home in Texas was 2,189. However, that size has since declined 5.3% to 2,073 square feet by 2025, according to Realtor.com data.
In San Antonio, builder Lennar is a leader in the tiny house movement, having built master-planned home communities through Elm Trails, Flora Meadows, and Paloma. Small houses are up to 350 square meters. (Lennar declined to comment on this story.)
Local estate agent Miguel Mata by Living Lavish Realty has a series of viral TikTok videos that tour tiny homes.
“I didn’t expect it [the videos] for them to blow up like they did,” Mata tells Realtor.com. Every TikTok reel has millions of views, with one reaching 12.4 million.
Each of the homes he advertises has found buyers. “They sell quickly,” he says.
But not everyone agrees that these small houses are affordable. “You should be ashamed of yourself for showing this video that rips people apart!!” yelled one viewer about the 350-square-foot pad.
An Elm Trails tiny house (for sale) was priced at $107,999 or $308 per square foot, nearly double the $173 per square foot median in San Antonio.
“$107,000 for that highway robbery,” quipped one viewer. “You might be homeless then, because then you won’t have a loan.”
What drew more ire was the unusual layout of the small house, with no door to the yard, a ladder needed to reach the loft with the water heater, and two small open closets that Mata loosely described as “walk-ins.”
“Wardrobes, ha!” quipped one commenter.
“It’s troubling how upset people are,” Mata told Realtor.com. “OK, [a tiny home] it may not be yours, but it may be someone else’s.”
However, some viewers were fascinated by the youth’s living quarters. “These are so cute and small,” said another. “A great first home for one person.”
“I would buy this for my child when he turns 18, so he can go to college or work without worry,” said another.
Mata, who says he sold all 12 tiny homes in less than a year, tells Realtor.com that the typical buyer was a single person, usually a college student or older person. These houses were very popular with investors, most of them from foreign countries.
“You can rent out your home, pay off your mortgage, and get an income every month,” he notes. “Those houses can be rented for as little as $1,300 a month.”
Mata says investors are pouring in from all over the country, especially from California.
According to Realtor.com data, Californians have been flooding into Texas, especially since 2013. The main reason for migration is cheap housing. Residents of the Golden State are also more likely to immigrate to Texas than the second largest contributor of population, Florida.
Mata admits that the prices of tiny houses may not be as low as people would like, but they are much lower than a standard sized house. The median home price tag in San Antonio-New Braunfels is $320,245.
And builders like Lennar can provide plenty of incentives.
Mata advertised the controversial 350-square-foot home as a 4.5% mortgage (compared to 6% or more) with a down payment of only $3,780 through FHA (Federal Housing Administration) qualified buyers. This low price even included closing costs.
“These small houses may not be the home of your dreams,” he said. “But they are great first homes for home ownership and starting a real estate portfolio.”
