Tiny Homes, Big Price Tag

Why would you pay over $1 million for a home that’s less than 1,000 square feet?

“Location, location, location,” said Candice Cerro, a spokesperson for Realtor.com. “The square footage might be small but it’s a trade-off for a gorgeous view or a fun location,” she said.

Realtor.com compiled a list of 10 homes that fit that bill. You might think they’re all in New York, home of the closet-sized apartment, but many are in vacation destinations like Hawaii, California or the Massachusetts harbor and often serve as a second home.

Check out these 10 tiny homes -- and see why they come with such a big price tag!

By Cindy Perman Posted 23 Nov 2010

Price: $3.2 million
Size: 1,000 square feet (3 bed, 2 bath)
Price per square foot: $3,200

For $3.2 million you get two things: The ocean – and quiet. This house is located in the gate-guarded Capistrano Bay community and you literally walk off the front porch (which, at the moment, is a plank of wood) and into the sand. “You will enjoy the privacy and quiet unheard of on other Southern California Beaches,” the ad boasts. Here’s the kicker: The ad suggests that it’s a “fantastic lot to rebuild if a beautiful new home is on the radar.” If you had any doubts, you’re straight now – it’s all about the location! (More at Realtor.com)

Price: $2,475,000
Size: 616 Sq. Feet (1 bed, 1 bath)
Price per square foot: $4,018

With this home, you’re also buying the Southern California beach and ocean views – this time, in Montecito village Santa Barbara, one of the wealthiest communities in the U.S. You can see why many famous people have homes here (including Oprah Winfrey and Steve Martin) – it’s tucked between the beach and rolling hills and mountains, with private schools, country clubs, walking trails and waterfalls. The house itself has a proper porch that’s elevated a few feet above the sand, with a charming California cottage feel and a fireplace to warm you on breezy nights. (More at Realtor.com)

Price: $2.1 million
Size: 800 square feet (3 bed, 1 bath)
Price per square foot: $2,609

This house is modest by any means – some might call it a shack. But it’s a shack right on the beach, complete with deck and hammock, in Paia on the north shore of Maui. A former sugar cane plantation, Paia is a quaint beach town that’s a mecca for surfers. There are charming shops and award-winning restaurants as well as some of the most beautiful beaches in the world. (More at Realtor.com)

Price: $1.8 million
Size: 943 square feet (3 bed, 3 bath)
Price per square foot: $1,909

They say everything’s bigger in Texas and, well, even the “tiny” homes are bigger! This 943 square-foot home has three bedrooms, three baths, a great room, a waterfall and a six-car garage. And, while that may sound like the clown car of million-dollar homes, defying all logic of how much you can fit in a small space, it actually comes down to a little thing called Texas law, explains Doug Roberts, a realtor with Moreland Properties. Only air-conditioned square footage counts, so that six-car garage? Not part of the 943 square feet. Ditto for the screened-in patio and any other spaces that aren’t air conditioned or heated. So, technically it’s bigger than 943 square feet but legally, that’s all it is. Why would you pay nearly $2 million? It’s on the lake in land-locked Austin, Texas, with a full acre of land and the home was designed by architect David Shiflet, who did Lance Armstrong and other famous resident’s homes. (See a360-degree tour and more at Realtor.com.)

Price: $1.7 million
Size: 800 square feet (1 bed, 2.5 bath)
Price per square foot: $2,094

This home, on the south shore of Kauai, is just minutes from Poipu Beach, which is consistently ranked as one of the most beautiful beaches in the world. It’s also near Kiahuna golf courses, which said to be some of the most beautiful golf courses in all of Hawaii. It’s just 12 miles from Lihue Airport, which offers easy access on and off the island. This Spanish-style home is only 800 square feet with one bedroom but it’s a waterfront property, with substantial outdoor space – a large porch, patio and swimming pool. (More from Realtor.com)

Price: $1.2 million
Size: 967 square feet (3 bed, 2 bath)
Price per square foot: $1,236

This cottage is on Balboa Island in the southern California city of Newport Harbor, which is ranked as the wealthiest city in the U.S. Its population density is evidence of how popular it is – there are 3,000 residents on the island, which is just 0.2 square miles. This is a short sale, so at $1.2 million, it’s a bargain for 967 square feet! It’s a typical island cottage with a large stone fireplace and beamed ceilings. Plus, large, sunny front and rear patios with a rose garden. The ad also boasts that it has an outstanding rental history – so, if you play your cards right, you could make back that $1.2 million! (More from Realtor.com)

Price: $1.1 million
Size: 932 square feet (2 bed, 2 bath)
Price per square foot: $1,179

Cerro says this is her favorite home on the list. “While the home is nice inside, the real selling point is a gorgeous swimming pool and deck that overlook the ocean,” she said. It’s on the western shore of Hawaii’s Big Island, at the center of the island’s commerce and tourism industry. Kailua-Kona is the home of Kona coffee and some of the best snorkeling in Hawaii. The home is also just 13 miles from Kona International Airport which makes for easy access on and off the island. (More from Realtor.com)

Price: $1.1 million
Size: 720 square feet (2 bed, 1 bath)
Price per square foot: $1,521 square feet

This is an “old funky beach cabin,” said Alaina Giguiere, the principal broker at Kamali & Co. but “it’s not about the property, it’s about the land. It’s a beautiful oceanfront lot,” she said. It’s on Cannon Beach, nestled between the ocean and the mountains. It’s often referred to as the “Laguna of the Oregon Coast,” she explained, a charming, artsy community with many working artists and galleries, plus fine dining and boutique shopping. The home itself has sweeping views of the ocean and the famous Haystack Rock, an igneous rock that rises 235 feet. You don’t have to look far to find the needle in this haystack – there are two tall, thin rocks nearby that have been dubbed “the Needles.” (More from Realtor.com)

Price: $1.05 million
Size: 760 square feet (2 bed, 2 bath)
Price per square foot: $1,380

Provincetown is a popular vacation destination on the tip of Cape Cod and is particularly popular with the gay community. This home is on Commercial Street, the main street of P-Town, as it’s called, with waterfront views of Provincetown Harbor. It’s a historic building that’s part of the old Union Wharf, which dates back to the 1840s, explains Joe DeMartino, the listing broker with Coldwell Banker. About 85 percent of the buyers in P-Town are looking for a second home but the current owners of this property lived here year round and operated the restaurant next door, which is also for sale. (More from Realtor.com)

Price: $1.1 million
Size: 951 square feet (1 bed, 1.5 bath)
Price per square foot: $1,167

No list of tiny homes would be complete without an entry from New York City. This 951 square-foot home, spacious by New York standards, is in the heart of New York’s theater district in a super luxe building. The apartment is a corner unit, with great city view and lots of light. There’s a gourmet chef’s kitchen and a luxurious spa bathroom that features a freestanding soaker tub and a glass-enclosed shower with limestone and river rock. The ad boasts that it’s like living in your own five-star resort: doorman and concierge service, a wrap-around terrace on the fifth floor with tanning beds, cabanas and misting areas (are we still in New York?!), stone fireplace, dry sauna, gym, yoga studio, massage room, golf simulator, a juice bar, coffee bar and tea bar, with complimentary continental breakfast served 6am to 10am weekdays. (More from Realtor.com)