Housing Remains Costly, The Solution Could Be Tiny Houses
Let’s face the inconvenient and unacceptable truth: owning real estate has become unaffordable for the majority, and there’s no realistic scenario where this trend will be reversed in the years to come. However, housing is essential. If a state cannot provide affordable housing to its residents, it will struggle to sustain itself and the society that empowers it.
It sounds dramatic, and it is: the challenges faced by the people of Madeira require solutions if we are to preserve our society as we know it. So, where will people live? - those who haven’t inherited wealth or who work in notoriously low-paid sectors like tourism? Tiny houses, also known as tiny homes, could be a new yet challenging solution.
What Are Tiny Houses?
A tiny house is a small, self-contained space that typically measures less than 50 square meters. A Tiny House prioritizes efficiency and minimalism, often featuring multi-functional spaces and sustainable features. The Tiny House Movement gains traction and proves that Tiny houses are becoming popular as people seek more affordable, eco-friendly, and minimalist living options. Prices vary but fully equipped tiny houses are easily available for less than 100.000 euros and start as low as 25.000 euros.
Why Tiny Houses Are Affordable And Convenient
Tiny houses come in several types. They can be built on trailers for easy relocation or placed permanently on a platform. Some are constructed from shipping containers, while others are foldable and quickly assembled. A major advantage of tiny houses is that they can be manufactured off-site in a factory, which significantly reduces building costs. This major advantage explains why some say that the future of affordable living & construction lies in pre-fabricated housing. Furthermore, due to the reduced living space, tiny houses require minimal maintenance and utility costs.
"Our units are manufactured in 12 weeks, in the factory, and then delivered to the site, fully finished, using the 'plug & play' concept, meaning there is no construction or assembly of the units' elements on site. The units are a product created and manufactured in Portugal, using almost exclusively Portuguese materials, from the wood to the equipment"
Francisco Salgado from UNIT Living
Tiny House Offer in Madeira
As of today, tiny houses are not yet widely available in Madeira, but we see them more and more often. There is a company called PTM Tiny Houses Madeira that widely advertised and build tiny houses in the region, but I assume they are either out of business or have relocated or changed their focus, as they ceased all online activity years ago. However, you can still check out their impressive Instagram and Facebook.
You can explore tiny house listings on real estate platforms like Idealista. Below is a recent offering in Caniço, Santa Cruz, advertised as a true gem of design and functionality. Here’s what it has to offer:
21 square meters
2 floors
Fully equipped with bathroom and kitchen
Price: €50,000
Video Of A Tiny House in Madeira
Challenges When Building A Tiny House
Challenges consist of having the right plot with a permit to build. Unless you want a fully autonomous solution, Tiny Houses obviously require access to water and electricity, so you'll need to connect your tiny house to the local water and electricity grid. Furthermore, a suitable waste disposal system should be in place. You will also need a permit. Depending on the region, a permit is usually required if a dwelling exceeds 15 square meters, so almost always.
If you choose a solution connected to the grid (water and electricity), there could be a difference of more than 10,000 euros compared to a 100% autonomous solution. It costs around 4,000 euros for electric autonomy, 3,500 euros for water autonomy (with filtration, ceramics, etc., tank, pump included) and 2,500 euros for gas heating.
Why Tiny Houses Are Better Than Renting
Tiny houses offer an affordable housing solution, making homeownership accessible even to those with lower incomes. With credit-based financing options available, individuals can transition from renting to owning their own home, building equity and saving for the future in the process. Tiny houses empower people to invest in their own real estate, providing them with the opportunity to live in a space they own, rather than paying rent for a property that belongs to someone else. This shift not only promotes financial independence but also fosters long-term stability and gives authority to the citizens.
Tiny Houses Can Be A Solution for Madeira
Tiny houses are particularly well-suited for Madeira’s economy, which is largely service-oriented, especially in tourism. Workers in this sector often need to be highly adaptable due to the seasonal and dynamic nature of the industry. The days of accumulating large amounts of household items are fading, especially in an economy that increasingly values mobility and minimalism. For those in the tertiary sector, where relocations may be frequent, a tiny house provides a practical solution, ensuring they can move with minimal hassle.
Madeira, often referred to as the “island of eternal spring,” offers ideal conditions for tiny house living. With its mild climate, you won’t be relying heavily on indoor spaces. In fact, the cozy yet compact nature of a tiny house may enhance your appreciation for the island’s natural beauty, allowing you to spend more time in alignment with what Madeira is valued for.
While a tiny house might not be a permanent, lifelong home, it offers a level of accessibility that traditional housing options can’t. Tiny houses come at a much lower cost compared to conventional homes, making them a smart and often the only financial decision for those seeking affordable housing in Madeira. Ultimately, this is the most compelling argument for why tiny houses are a key piece in the puzzle of addressing Madeira's housing crisis.
What do you think about tiny houses in Madeira? Let us know your opinion in the comments!
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