Tiny houses like that cost huge bucks because the federal government is subsidizing huge mortgages. Federal subsidies are were a big cause of the housing bubble — and now they’re trying to keep the inflation going by keeping the subsidies going. The GOP doesn’t seem to be able to kick the spending and subsidizing habit. Really disappointing, but it shouldn’t be surprising, after the years 2000-2006, when Republicans controlled Congress and the White House — and government spending grew more than any time in history.
I agree that subsidies, including the home interest mortgage deduction, artificially inflate housing proces, and they should all be done away with.