Three US states are giving out up to $125k in free money so you can build own tiny home – but there are certain criteria

STATES across the country are encouraging residents to build their tiny homes, providing them with money to help cover construction costs.

Tiny homes have become increasingly common over the country, providing people with cheaper housing that’s easier to mobilize.

Tiny Homes have become increasingly popular in recent years


Tiny Homes have become increasingly popular in recent yearsCredit: Getty

Three states are encouraging their residents to build tiny homes, hoping to have an impact on the ongoing housing crisis, with people being able to earn $125k to build their homes, per Insider.

These backyard homes are also known as accessory dwelling units (ADUs) and can range from features to sizes.

The following states are providing interested parties with the chance to apply for grants and get their tiny homes built.


The state of California is providing up to $40,000 per grantee.

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Residents of the state with low to moderate income will be able to apply as soon as the program rolls out.

The state has a budget of $50 million at its disposal.

New York

The state of New York is granting up to $125,00 per applicant, allowing low to moderate-income makers to use the funds to build their own ADU from scratch or to invest in one that’s already in development.

The program has a budget of 85$ million to be used within the next five years.

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Vermont is planning on providing applicants with funds up to $50,000 to build an ADU.

They have funds of $15 million, and applicants can apply now.

ADUs have become increasingly popular as of late, with experts blaming the housing crisis.

These homes are much cheaper to rent out and have become a reasonable option for many Americans.

“I’ve even heard of one tiny house community in South Carolina where tiny homeowners have housing expenses as low as $99 per month,” said Judy Dutton, executive editor at, in an interview with The US Sun.

She claims these homes are trendy “purely because many Americans simply can’t afford a regular-size house.”

Dutton also claims families and users that are eco-conscious are also attracted to these homes, which drastically reduces homeowners’ carbon footprint.

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