Given that tiny houses have not exactly taken off, here are three possible reasons why:
The concept is appealing, but in truth, people have found it challenging to locate places where they can permanently park their home on wheels. It has become an issue in many communities, as homeowners worry that the character of the mobile homes will diminish their property value. Locating the perfect site can be easier in rural areas.
Another dose of reality has come in the form of human behavior. It turns out that for some of the people appearing on the various HGTV programs devoted to tiny-house living, the strain of living in such tiny quarters has surfaced. As we see with follow-ups, some couples cannot manage to live in 300 square feet together, and one moves out.
Additionally, when compared with the lifestyle of an urban micro-unit, rural or suburban settings are more restrictive. In the city, for example, people can get to a pub, cafe or coffee house in minutes simply by walking out the building’s front entrance and down the block.
These are three important challenges. The first and third discussed above seem related to me: it may take a significant amount of time before communities develop zoning and planning that allows for tiny houses. Current residents might view them as threats not only because are they mobile but also because the homes are also significantly cheaper than many other kinds of housing units. In the best case for tiny homes, communities would allow them to fill in spaces between existing buildings and units. This would increase density and possibly provide more tax revenue. In the worst case, tiny houses will be excluded from many desirable locations, contributing to the third issue above where the advantages of a tiny home and budget may be combined with needing to drive everywhere.
As for the second issue above, Americans like their (1) personal space and (2) space for lots of stuff. Tiny houses do not have much square footage for either. In a perfect world, the tiny house might be located in a vibrant urban or suburban area where the owner(s) could spend a lot of time outside the unit (taking advantage of third and public spaces like coffee shops, parks, and libraries). Without those nearby amenities, a tiny house might simply not offer enough separation from others. Additionally, a tiny house likely requires an owner to do without many things. This could be overcome through a variety of methods – living near family and friends with whom one could share, storage units, or a barter or sharing economy – but this requires more work and resources.
All of these problems might be solved eventually but it will take time.