Tiny Homes Are Big in Texas—and They’re Selling ‘Rapidly’

Not everything is bigger in Texas: Tiny homes are proving to be popular thanks to their affordability.

"Across the country, new builds have become smaller in an attempt to create more affordable options for homebuyers," according to the Realtor.com® Texas real estate report.

In the last 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 tinier 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 median square footage of a newly constructed home in Texas was 2,189. However, that size has since decreased by 5.3% to 2,073 square feet in 2025, according to Realtor.com data.

In San Antonio, builder Lennar is a leader in the tiny house movement, having constructed masterplanned tiny home communities with Elm Trails, Flora Meadows, and Paloma. The homes run as small as 350 square feet. (Lennar declined to participate in this story.)

Local real estate agent Miguel Mata with Living Lavish Realty has a series of viral TikTok videos touring the tiny homes.

"I didn't expect [the videos] to blow up like they did," Mata tells Realtor.com. All of the TikTok reels have millions of views, with one reaching 12.4 million.

Each of the homes he showcased found buyers. "They sell rapidly," he says.

But not everyone agrees these little houses are affordable. "You should be embarrassed showing this video ripping people off!!" scolded one viewer about a 350-square-foot pad.

The Elm Trails tiny house (which sold) 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 is highway robbery," jeered another viewer. "You might as well just be homeless at that point, cuz then at least you won't have a mortgage."

Drawing further ire was the tiny home's unusual layout, with no door to the backyard, a ladder needed to access a loft area with water heater, and two small open closets that Mata generously describes as "walk-in."

"Walk-in closets, ha!" scoffed one commenter.

"It's mind blowing how offended people get," Mata tells Realtor.com. "OK, [a tiny home] may not be for you, but it could be for someone else."

Other viewers, however, were enamored of the teensy dwellings. "These are so cute and little," gushes one. "Great starter home for a single person."

"I'd buy this for my kid after he turns 18, so he could go to college or work without the worry," said another.

Mata, who says all the 12 tiny homes he repped sold in less than a year, tells Realtor.com that the typical buyer was a single individual, often a college student or downsizing older person. The homes were also popular with investors, many of whom came from out of state.

"You can rent the homes out, cover your mortgage, and get income each month," he notes. "Those homes can be leased out for a minimum of $1,300 a month."

Mata says investors rushed 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 the migration is cheaper housing. Golden State residents are also the most likely to migrate to Texas, far more than the second biggest population contributing state, Florida.

Mata acknowledges that tiny house prices may not be as low as people would like, but they are a lot lower than the typical standard-sized house. The median home price tag in San Antonio-New Braunfels is $320,245.

And builders like Lennar can offer plenty of incentives.

Mata advertised the controversial 350-square-foot tiny home as having a 4.5% mortgage rate (versus the typical 6% or more) with a down payment of only $3,780 with an FHA (Federal Housing Administration) loan for qualifying buyers. This low price even included closing costs.

"These tiny homes may not be your dream home," he says. "But they are the perfect starter homes to experience homeownership and to begin a real estate portfolio."