How Much Does It Cost to Build a Tiny Home? On Wheels vs. Permanent Foundation

"How much does it cost to build a tiny home?" is one of the most Googled questions in the tiny home world — and the answer depends on a few big decisions you'll make before a single nail goes in.

Foundation or wheels? DIY or professional? Basic or custom? Let's break it all down so you actually know what you're getting into. 

The Big Picture Numbers 
Building a tiny home costs $30,000 to $150,000+ depending on size, method, and finishes. Here's how that breaks down by approach: 

• DIY build (basic): $15,000–$35,000 in materials. Add your time.
• Prefab or kit: $35,000–$75,000. Faster, more predictable costs.
• Professional custom build: $50,000–$140,000+. You get exactly what you want.
• Move-in-ready from a builder like Cocoon: $55,000–$115,000 for a THOW. Foundation builds may vary. 

Tiny Home on Wheels vs. Foundation: How Does It Change the Cost? 
This is one of the biggest decisions you'll make, and it affects your budget in a few important ways. 
Tiny home on wheels (THOW): You'll pay $4,500 to $11,000 for the trailer instead of a foundation. On the flip side, THOWs often qualify as RVs in many jurisdictions, which can mean fewer permits, lower inspection costs, and simpler zoning compliance. THOWs also skip property taxes in many areas, since they're classified as personal property rather than real estate. 
Tiny home on a foundation: A concrete slab foundation costs $6 to $14 per square foot, or roughly $12,000 to $28,000 for a typical tiny home footprint. That's more upfront than a trailer. But foundation homes typically qualify for more traditional financing, and are generally seen as more permanent by lenders and insurers. 

Per-Square-Foot Cost: What Does It Actually Mean? 
Tiny homes typically run $150 to $450 per square foot. That's actually higher on a per-square-foot basis than most traditional homes — because you're cramming a full kitchen, bathroom, and all the core systems into a much smaller space. Every square foot has to work harder. 
Prefab and kit builds tend to land on the lower end ($150–$250/sq ft). Custom builds are on the higher end ($250–$450/sq ft). 

The Costs People Always Forget 
No matter which route you take, these costs tend to sneak up on people: 
Land. If you don't already own a spot, land costs range wildly — from under $10,000 per acre in rural areas of states like Wyoming or New Mexico, up to $100,000+ per acre in places like Massachusetts or New Jersey. The national average is around $18,657 per acre. 
Land development. Even if you own land, it might need grading, clearing, or utility access work. Budget 20–30% on top of your build cost for this. At Cocoon Homes, we do land development at cost. 
Permits and inspections. Depending on location, this ranges from $500 to $3,000+. THOWs with RV classification can often reduce this significantly. 
Utility hookups. Water, sewer, electricity — expect $2,000 to $8,000 to get connected. 
A contingency buffer. The industry rule of thumb is to add 15% to your budget for unexpected costs. Construction almost always has surprises. 

Who Should Build vs. Buy? 
Build if: You want a home that's designed around your life, you have the time to manage a project, or you want to know exactly what's in your walls. 
Buy if: You want speed, simplicity, and a move-in-ready home without the project management headache. 

Work with a builder like Cocoon if: You want the benefits of a custom build without doing it yourself. We handle design, permitting, construction, and delivery — and we consult with you every step of the way. 

Want to see what's possible for your budget? Start a conversation at mycocoonhomes.com 

Data sourced from HomeAdvisor, HomeGuide, Rocket Mortgage, and House Beautiful (2024–2025). Actual costs vary significantly by location and specifications.