Chattanooga Neighborhood Enterprise has just completed their very first “tiny” home – a 532 square foot, energy efficient dwelling in the Ridgedale neighborhood.
The development of the tiny home is driven by public interest in smaller homes and the need for affordable housing in Chattanooga. The home is a market-driven approach to meet the city's affordable housing need as no government funds are being used in its development, said officials.
“As public funding for housing becomes scarcer, CNE is now exploring alternative ways to create housing that people earning $11 an hour can afford,” said CNE President and CEO Martina Guilfoil. “Building smaller homes are one of the best ways to meet that need.” Ms. Guilfoil projects the monthly expense of owning the tiny home to be less than $650 per month.
CNE’s tiny home is larger than those seen on Tiny House Nation, but was designed to fit into the fabric of the neighborhood and sits on a foundation. Smaller homes mean a smaller price point, which is appealing to many people, especially millennials. According to a recent survey from the Federal Reserve, 64 percent of renters reported that obtaining a mortgage would be somewhat or very difficult. In another survey, millennials reported that the biggest hurdle to obtaining a mortgage is the down payment.
“As more millennials move into the housing market, smaller homes are becoming a necessity,” says Bob McNutt, the real estate manager at CNE. “We want to provide high quality small homes that make a great space for anyone, regardless of down payment issues.”
CNE is hosting a Tiny Open House at the home on Thursday, Oct. 8, from 4-7 p.m. The public is welcome to tour the property at that time. The address is 810 S. Willow St.
CNE is planning to build additional small homes in the area. CNE has plans to develop nine homes in the 800 to 1300 square foot range in Highland Park. These two-bedroom homes will meet a need in the neighborhood for more affordable, energy efficient new homes, said officials.
“CNE’s mission is to build economically diverse neighborhoods, and that is made possible with a diverse housing stock at various price points,” says Ms. Guilfoil.
In addition to homes for sale, CNE is also breaking ground on a new 45-unit apartment complex this fall. To help meet the need for affordable housing in the city of Chattanooga, 11 units will be restricted to people earning less than $23,000 per year.
For more information on Chattanooga Neighborhood Enterprise, please visit www.cneinc.org or call 756-6201.