Could Walmart’s tiny homes under $16,000 be the solution for affordable living?

In an unexpected twist for homebuyers, Walmart (WMT) is stepping into the tiny house market, providing affordable living options just as Amazon previously ventured into this space with trendy pop-up homes.

The retail giant is offering an “expandable prefab house” from Chery Industrial, priced at an attractive $15,900 for the 19-by-20-foot model.

This price point is notably lower than Amazon’s earlier listing of $19,000 for a similar tiny home, which included a temporary discount of $1,000 back in April; however, that model is currently unavailable on Amazon’s site.

For those seeking even greater savings, the manufacturer has a more compact version of the prefab house—a 15-by-20-foot model—currently retailing for just below $12,000.

Purchasing one of these homes requires some additional effort; buyers will need to secure a parcel of land, along with the necessary foundation, power supply, and water connection.

The house itself comes equipped with essential amenities, including a toilet, shower, cabinets, and door locks.

Upon delivery, the house arrives in a compact, folded state.

Buyers will need assistance to unfold the walls and ceiling to achieve the full structure. While furniture is not included, shoppers can conveniently find furnishings at Walmart or Amazon.

The tiny-home trend has gained momentum over the past couple of decades, driven by millennials who are increasingly rejecting sprawling “McMansions” amidst soaring housing prices.

One 24-year-old who embraced the tiny home lifestyle in her parents’ backyard managed to save enough for a $250,000 house and amassed a significant TikTok following sharing her journey.

In an era where affordability feels increasingly out of reach, Walmart’s tiny homes could very well redefine what it means to live large on a smaller scale, offering a practical pathway to achieving the dream of owning a home.