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I think you are either too wealthy or too attached to city living to understand the point of these.
Tiny homes:
are affordable to anyone with almost any income, not just $80-100k+ a year incomes (which are practically mandatory now to buy a home in the current economy)
Can be set up literally anywhere that zoning allows for
A good choice for off-grid/prepper lifestyle
A good choice for solo living or for a couple to share with no kids
Hell, at that price point, buy two and have an awning setup in-between them to link them.
Privacy from the kids and still under $38k.
I’d get one as an in-law suite even!
For the 18k they’re charging you could get like 3 12x24 foot sheds, plus some shit to put inside of it, which is a hell of a lot better than one 20x7 hut.