Housing market affordability is so stretched that Amazon is selling $30,000 tiny homes

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Back in the spring, ResiClub reported that in response to the growing strain on housing affordability, Home Depot is selling tiny homes.

It turns out Amazon is doing the same, continuing to expand its offerings of tiny homes and Accessory Dwelling Units (ADUs) on its e-commerce website.

Among the Amazon offerings is this 40-foot luxury portable shipping container home. Dubbed the 'Modern Prefab Modular House with Glass Walls,' it’s priced at $28,865. The description highlights its two-story design with “fast and easy setup and a customizable layout, making it ideal for tiny homes, guest houses, or modern offices."

The listing above isn’t an outlier either. There are dozens of these tiny/prefab homes for sale on Amazon.com.

However, it's crucial to note that purchasing a home kit on Amazon.com or from Home Depot does not guarantee legal installation rights. Some local municipalities are advocating for more ADUs to alleviate housing constraints, while others maintain stringent restrictions.

The concept of do-it-yourself homes isn't exactly novel. Sears famously sold over 70,000 mail-order homes between 1908 to 1942. Sears catalog homes (see image below) were pre-cut and ready-to-assemble houses offered as affordable and convenient housing options to Americans during the early 20th century.

The return of mail order homes does underscore the mounting housing affordability stress in the U.S. as buyers have spent years contending with limited inventory, rising house prices, and spiked mortgage rates.

Are you a real estate investor? Do you own rental property? 🏠

If so, you’re invited to participate in the Flock Homes-ResiClub Real Estate Investor Survey.

The survey results will be published later this month in ResiClub—and in other mainstream media publications.

U.S. home prices, as measured by the Zillow Home Value Index, fell -0.2% between the August 2024 reading and the September 2024 reading.

That's a soft month-over-month print (see the historical table below). That said, nationally aggregated home prices are still up a little on the year.

Year to date = +3.7% 

Year-over-year = +2.4% 

Since the 2022 peak: +2.9% 

Since March 2020: +45.0%

While national home prices are still rising year-over-year, some markets, in particular around the Gulf, are seeing outright home price declines.

One example is Punta Gorda’s housing market, which remains in correction mode. Home prices in the Punta Gorda, FL metro are down -11.8% from their 2022 peak.