Determinants of the adoption of tiny houses and their role in alleviating housing shortages in Germany

The lack of affordable housing and the considerable negative environmental impact of the housing sector pose significant challenges for policymakers. Tiny houses have been proposed as a potential solution, but there is still limited understanding of consumer behaviour and attitudes towards such solutions. This study looked at the adoption of tiny houses in Germany by applying the Theory of Planned Behaviour as a theoretical framework to explore demographic and socio-economic factors, motivations, and barriers for living in tiny houses. Data was collected through interviews and an online survey. The results showed a statistically significant positive relationship between intention to live in a tiny house and age, and a significant negative relationship between intention and current accommodation size. Main motivations found in this research were sustainability, cost reduction, freedom, minimalism, mobility, and a sense of community. The main barriers included legal restrictions and a negative perception of minimalism. The lessons learned from this research were: (1) COVID-19 had a negative impact on about 40% of participants, but a statistically significant positive impact on those who were already interested in small houses. (2) Although tiny houses located in cities would be preferable to meet the need for well-connected, high-density housing solutions for young and elderly people and to alleviate the housing shortage, most people seem to be interested in rather rural tiny houses. (3) Minimalism is both a motivator and a barrier to interest in tiny houses, but with a societal shift towards sustainability could become more of a motivator. (4) Interest in tiny homes often builds on financial constraints and limited alternative housing options. (5) The Theory of Planned Behaviour proved to be a sound theoretical framework for this research.