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400 Sq Ft Tiny House For Sale
I spend the night in a tiny 400-square-foot house in Austin, Texas, that rents for $1,480 a month. I can see why people are choosing this over an apartment in this hot housing market.
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This 400-square-foot microhome is one of 66 new units at Casata Austin, a development from a local startup looking to shake up rental housing. James Rodriguez / Insider
I recently spent the night at Casata Austin, a new community of 66 microhomes for rent. It offers an alternative to traditional homes or apartments in one of the most popular housing markets in the country.
The 6-acre community is located in a quiet neighborhood approximately 20 minutes south of downtown Austin. Arriving at the project on a rainy April morning, I was greeted by rows of dark green houses surrounded by lush oak trees, giving the area a jungle feel.
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The development represents a proof of concept for Cassata, an Austin-based company founded in 2020 that plans to build communities similar to microhomes for rent throughout Texas and eventually the country.
Cassata said the next surge is in San Marcos, a booming college town about 30 miles south of Austin. At over 200 units, it’s even bigger than Casata Austin.
The company is also looking for growth in other Texas cities such as San Antonio, Houston, Dallas, Waco and College Station.
The casata welcomed its first residents in February, almost a year after construction began. Only five of the 60 homes are available to rent for long-term residents.
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Home sizes range from 378 square feet for a one-bedroom, one-bathroom unit to 758 square feet for the largest two-bedroom floor plan. Each rental home has a covered balcony, which also varies in size.
Forrest Hardy, who oversees technology, marketing and CasaStay, Cassata’s short-term rental business, said it expects to rent out the remaining units in the coming weeks.
Six of the Casata units are for short-term rental, listed on sites such as Airbnb and Vrbo. I stayed in one of these units: a single bed, one bath with 400 square feet of interior space.
Hardy said CasaStay is being spun off as its own company and that short-term rental units could comprise a large portion of future Casata growth.
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Casata is the brainchild of Aaron Levy, a local real estate developer who got the idea during the COVID-19 pandemic. I met him shortly after I moved into my rented unit.
Levy tells me he wants to create a community of vacant homes that offer privacy and comfort at affordable rents and have a smaller footprint than many homes today.
He said he also wants to create a sense of community that he feels is lacking in apartment complexes.
“You get your own personal home and sense of place, but we’re really creating a lifestyle that’s connected to the community,” Levy said.
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Rising prices have put home ownership out of reach for many Austin residents, causing them to seek other options. Casata wants to help fill that need for housing.
According to brokerage firm Redfin, the median sale price for a home in Austin reached $645,000 in March, up 21.9% from a year earlier.
Rent has also increased. According to listing site Jumper, the median monthly rent for a one-bedroom apartment in Austin is $1,550, up 31% from a year ago, while the median rent for a studio is $1,290.
In Camden Shadow Brook, an upscale condo community about 2 miles from Casata Austin, rents start at $1,459 for a 659-square-foot one-bedroom unit.
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That price is roughly the same as the Caseta house I live in, but for more square footage.
But there are tradeoffs. In the casata I don’t share walls with anyone and I feel like I have more privacy and outdoor space than I would in an apartment building.
Levy said Cassata is looking to have 30 to 40 communities in the next five to seven years, equating to a portfolio of about a billion dollars. The company’s backers include the family office of WeWork founder Adam Neumann, he said.
Casata units are considered manufactured homes, meaning they are manufactured in a factory and shipped to the Austin location where they sit on a steel frame.
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Casata partnered with manufactured home builder, Champion Homes, to create these units using pre-existing floor plans with minor modifications.
Levy said the Casata Austin homes are built in a factory near Dallas, where they can usually be built in less than a week.
Future Casata communities may have floor plans designed by Casata and use modular construction, meaning they will still be built in factories, but will sit on a foundation like a traditional house, and be built on-site. Will meet uniform building codes required for construction of homes. ,
Casastay’s short term units come fully furnished. My unit looks and feels like other Airbnbs I’ve stayed in, with a muted color palette punctuated by pops of color.
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The living room features a built-in entertainment center and a tall counter top that doubles as table space. It’s not the prettiest desk I’ve ever seen, but it’s a nice touch in this work-from-home age.
The windows above the kitchen counter keep the home from feeling cramped. The kitchen has plenty of cabinetry and counter space, making it more functional than I expected.
Space is at a premium, so the kitchen no longer has an oven in favor of a convection microwave, a combination microwave and convection oven.
My favorite thing about the house is the abundance of natural light and greenery. The windows above the bed are lit while still offering privacy.
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The back porch of my unit has lots of chairs and a small table, which I imagine would be the perfect place to hang out on a warm Austin night.
Across the street from my unit is a community garden where residents grow a variety of vegetables.
Adjacent to the courtyard is a shaded area with picnic benches where Casata plans to host community events. A Kasata staff known as the “Campus Alchemist” is dedicated to managing the activities.
Next to the community room is a stage where Casata plans to host fitness events such as yoga classes and live music.
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The Casata community center features a recreation center with a swimming pool, coworking space, and gym. It was in the final stages of construction when I visited, but I got to take a look.
Build-to-rent communities like Casas, where developers build single-family homes that are rented rather than sold, are booming in Austin. Many include apartment complex amenities such as swimming pools.
A coworking space at the center of the facilities has lounge furniture that can be rearranged, as well as tables and nooks where people can work independently. Adjacent is a conference room for meetings.
Residents who need more space for their belongings can rent storage space at this warehouse opposite the facility.
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While I was there, the community was powered by two generators—one of which is pictured above—which were placeholders until Cassata was able to connect to the grid in late April.
In the afternoon, I visit my neighbor, Vicki Restani, a 71-year-old semi-retired nurse in California who rents a two-bedroom house in a casata with her dog, Kiah.
The Restani’s 758-square-foot floor plan is the largest available at Casata Austin, and you can feel it right away — the vaulted ceilings and more spacious layout make it feel like a traditional single-family home, though it’s still compact.
Restani bought a 2,000-square-foot house in the Austin area when he moved here from San Francisco about four years ago. But when her monthly property taxes went up by $1,000 last year, she knew she had to move.
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In February 2021, his niece showed him an ad for the Casata Austin, and Restani signed a lease overlooking the site. Since he was one of the first to sign up, he pays $1,570 per month, which covers advanced internet, utilities, garbage, storage unit and pet fees.
Restani said living in a casata feels “very different” than living in an apartment complex, which she owns.
“I feel like I have a home,” Restani said. “People are outside, they’re meeting each other and having conversations. That’s never happened in my experience in apartments. People are almost in their lives.”
“I had to give up a lot of things that I’ve had for a long time,” Restani said. “But once I started, I felt great. I felt really light.”
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Casata is unlikely to solve Austin’s affordable housing crisis. But
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