Costco Sells Tiny Houses: Here Are The Hidden Costs

It's that time of year again -- time for us to set our goals for the next 12 months, and with any luck, crush them. For a lot of people, it'll be the old standards: going to the gym more, learning a foreign language, or finding true love. For others, those goals may be more financially focused, like buying a house.

But, with housing prices where they are, going the traditional home-buying route might be a touch out of your price range -- and maybe you're considering a tiny house. The good news is that Costco is now offering site-built tiny homes through its Studio Shed line, so if you know someone who would let you plant a little house on their prairie, read on.

What does a Costco tiny home cost?

The Studio Shed line comes in three different models, including the Pagoda, the Boreas, and the Solitude (these are very serious-sounding names if you ask me). Each model can be built as an 8-foot-by-10-foot, 8-foot-by-12-foot, or 10-foot-by-12-foot unit, and are priced accordingly.

The smallest units start at $12,499.99 for the base model, Pagoda, and go up to $13,999.99 for the highest end unit, the Solitude. The largest units are $13,999.99 and $15,999.99, respectively. That sounds like an amazing bargain, especially considering it would take roughly $400,000 to buy a median-priced house in America these days.

Well, there's a catch to all of this. Costco tiny homes are site-built, but they only include the walls, ceiling, floor, windows, siding, and roof. Unfortunately, there's a ton more that goes into a house -- even a tiny one.

What do you need for your Costco tiny home?

You're going to need a bunch more stuff for your Costco tiny home, and in many municipalities, a licensed professional to install it. Here's a short list of must-haves to get you started, whether you need a personal loan or will be paying out of pocket.

Building permit

If you have to have a building permit to install your tiny home, that can average about $1,350 nationally. This is important to not skip, if you build something that requires a building permit without one, your municipality can literally tear your building down.

Plumbing

Rough-in plumbing, or the part of the plumbing that doesn't include the fixtures like sinks and toilets, generally has to be completed by a licensed plumber. For a tiny home, you only really need a water heater, toilet, sink, and shower, though you may want to add more items, like a separate bathroom sink or washing machine hookup. Roughing in a sink, for example, costs $350 to 500 on average, and a water heater $400 to $1,800. A full bathroom rough-in can cost anywhere from $1,600 to $2,900. There's also going to be a cost to hook your tiny house up to the municipal water and sewer systems.

Electrical

Your tiny house needs power, unless you prefer to live in the dark. This will mean multiple outlets, light fixtures, and power to run your tiny water heater and appliances like a cooktop or washing machine, as well as a breaker box to ensure that it won't burn down if a circuit gets overloaded. You'll also need a professional installation, since electrical work always requires a permit. You're looking at somewhere between $1,500 and $2,500 for this work, though it will very much depend on the configuration of your Costco tiny home.

HVAC

You're going to want some kind of climate control in your tiny home, and the best bang for your buck is likely to be a single ductless mini split system. Although you can DIY these units, a professional installation will cost you somewhere between $2,000 and $6,000 for a single zone unit, which is more than enough for a small space.

Drywall

Here's one you can DIY in almost every location! Depending on the type of drywall you choose to use, you're looking at anywhere from $10 to $20 per 4-foot-by-8-foot panel, plus the cost of tape and mud, which is relatively minimal by comparison.

Lighting

Once the electrician has set the breaker box and runs the wires for your lights, you can install the lighting yourself. The cost of lighting varies widely, depending on what you want, and you can easily do a few fixtures for under $100 or spend $1,000 if you have some really specific tastes.

Kitchen cabinets and counters

This is another place where your costs depend on the materials you choose. And you can do it without a permit or a professional, if you're feeling brave. If you choose to upcycle or recycle old cabinets and counters, you'll find this cost is just a few hundred dollars, but if you want new, be prepared to break the $1,000 mark very quickly.

Bathroom cabinets and appliances

The same rules for the kitchen apply to the bathroom. If your plumber has done the rough-in, you only need to install your cabinet, sink, and other appliances, like a toilet or shower (or toilet/shower combo). Often these items can be salvaged from other remodelers doing upgrades, if you're not too picky, saving you money.

Of course, this is only the beginning, since a tiny home must be personalized to maximize efficiency, but it'll give you some idea what it really costs to buy and finish a Costco tiny home, if a home of your own happens to be one of your 2024 resolutions. If you're doing this on your own land, you may even qualify for a new construction home mortgage. Be sure to ask your banker before you get started.