Ok, so maybe I am guilty of being a little bit sensationalist in my title, but from some of my recent investigations and personal considerations, I don’t think that this is far from the truth!
I have been looking at some of the numbers (I won’t bore you with them) for debt in the US per person and have been shocked at what I have found! Some of the numbers are just plain old disheartening, but the one that I want to share with you is the one having to do with the national mortgage debt. This is the total amount of money that all Americans have pledged in exchange for owning or pursuing the ownership of a home.
If we divided the amount of money owed by the number of people in the US--every single man, woman, and child, that number would be around $23,688.
$23,688 per person. You have a family of 4? How does $94,752 sound? To some of us that doesn’t sound too bad! But considering that about 1/3 of Americans don’t own nor are trying to own their homes, that number jumps to around $72,000 a person!
So, I was wondering what I could do for $23,688... Travel? Sure! Be a high-roller for a week or two in Vegas? You bet! But how could I invest that to give me a solid and livable home that would last me my lifetime? $23,688 doesn’t go very far!
Unless...
You consider alternative homes or alternative materials!
There is a group right now called the “Small House Movement.” It is a fascinating collection of people who have taken it upon themselves to live without debt and with the smallest environmental footprint possible. The easiest way to do this, they found, is to live in a teeny-tiny yet incredibly functional home and be satisfied with it...
Just HOW small I can hear you all saying... how about under 500 square feet. Yikes! But, from an economic standpoint this is genius! You can heat these houses literally for pennies a day if that, and building one will cost you under $20,000 even if you want the best materials and accessories... You just have to have fewer of both... and be ok with that...
So, I have passively introduced the main problem with the Small House Movement. You have to be ok living in a “quaint” home. When I mentioned this movement to Rose she said something along the lines of, “That would be ok for California or someplace warm where you can be outside all day, but in Minnesota you would go crazy in a house that small.”
There must be some middle ground here! AND THERE IS!
Have you ever seen one of those enormous metal shipping containers being pulled behind a semi on the freeway? Or maybe on someone’s property being used as a make-shift storage shed? Let me tell you a little about those things.
Shipping containers are structural, meaning they are strong! They have to be able to be stacked a dozen high and be loaded with up to 30 tons of goods each. That is some impressive strength!
Shipping containers have to be weather-tight. They are often stacked on the exposed decks of massive ships so they have to be able to resist the wild weather encountered on long sea voyages. They are over-protected as there is no sense in risking 30 tons of goods because you didn’t put a good gasket on the door...
Shipping containers are plentiful! Last year, upwards of 90% of the goods sold in the world encountered a shipping container at one point of their existence. There were over 105 million shipping containers shipped out of China alone last year. Put together the global total and you are probably talking close to 1 billion shipping containers. That is 1 per roughly every 7 people on the planet...
Shipping containers are BIG! They are usually 8 feet wide, 9.5 feet tall, and either 20 or 40 feet long. This is either 160sq. ft. or 320 sq. ft. respectively. That may not sound like a lot, but if you put a few of them together your square footage jumps exponentially. 4 boxes? 740-1280 square feet... We are almost up to the national average of 1700 square feet!
Ok, but how do we get them? Easy! Well, not that easy, but they are plentiful. Depending on where they originate, most shipping containers only have a lifecycle of a set number of transports. After a certain number they become a liability and are replaced whether they need it or not since that is MUCH cheaper than wasting 30 tons of product... You can purchase these containers in various conditions for between $1000 and $2500. See where I am going with this?
Cheap, strong, weatherproof, decent sized housing out of something that would otherwise be thrown away? Now you are talking!
These are some photos of houses that were built with shipping containers. Some of them obviously cost more than $23,688, but imagine if you were starting at $4000 for the structure of your home... you’d still have $19,688 to spend on other furnishings and infrastructure!
Another option? How about metal silos? Many of the same rules apply to these as to the shipping containers except many times you can get these for free or for scrap metal prices as farmers don’t use them very often anymore!
Rose and I have seriously considered taking on the project of making a home or an auxiliary building out of either of these. We think that It could be a perfect fit for having a home with a small footprint without having it be tiny. Also, with the median home price in the US hovering just under $200,000 paying 1/10th of that means you could pay for your home in a period of 5 years easily versus the 30 years most mortgages run. Imagine the FREEDOM! (See, I always bring things back together!)
A few business ideas that spring off of this:
- A Bed and Breakfast on an old farm someplace in the gorgeous countryside or one of the old farms on the North Shore where all of the rooms are in metal silos converted to apartments with straw-bale insulation and a cozy feel...
- A company that designs, builds, and sells homes made out of silos and shipping containers. If you hd a few basic designs and finishes, I bet that you could get quite a few people to jump on the complete package cost for one of these of around $20,000! And you could build them for that easily!
Anyone interested?