Tiny homes in Georgetown, Delaware aim to redefine ‘affordability’

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In the heart of Sussex County, just on the edge of Georgetown, a light-blue house stands in quiet defiance of one of Delaware’s most pressing challenges: affordable housing. The two-bedroom unit — freshly sided and cleanly trimmed — is part of a broader vision led by Little Living, a Delaware-based nonprofit committed to building communities of compact, code-compliant homes for those who need them most.

Delaware currently faces a shortage of more than 20,000 affordable housing units, according to recent estimates from state housing advocates. The crisis has left thousands of low- and moderate-income residents burdened by rents, commuting long distances or at risk of homelessness. As new developments trend toward luxury and higher-income buyers, a vast swath of working families are being left behind.

Little Living’s founder, George Meringolo, didn’t set out to become a housing developer. In fact, he said his path was shaped by surviving — cancer, Sept. 11, 2001, and the Vietnam War. He’s also driven by a sense of obligation to do something meaningful with the time he’s been given.

“I survived being in the army during the Vietnam War, I had friends of mine killed. I survived 9/11, I was working in the World Trade Center … I kept asking when all my friends were getting killed, ‘Why them and not me?’ I kept asking that question to myself,” he said. “I finally ended up having to go through a PTSD program with the VA. I now know. I think there’s a reason why I wasn’t taken. The reason was for me to do this project.”

Building beyond shelters

Meringolo’s Little Living mission is rooted in providing real homes — not just temporary shelters — for Delawareans priced out of the housing market.

“These houses are not just houses. We’re building little communities. There’ll be playgrounds. There’ll be community centers,” he said. “They’re going to be solar-powered to keep the cost of energy down … it’s a total solution … I’m creating what I say is a village.”

Little Living’s homes are sized between 400 and 680 square feet, and while compact, they are anything but minimal. The two-bedroom unit has one bedroom on each floor, a full kitchen with standard appliances, a living area, a full bath and thoughtful design touches like breakfast nooks and storage.

“It’s a regular house. Plenty of room. Very, very roomy,” said Meringolo.

Affordability that’s actually affordable

The Georgetown community began to take shape after an unexpected phone call from a local landowner who, inspired by hearing Meringolo on the radio, offered him an acre of land.

“A fellow from Georgetown called me up and said, ‘I’ve got an acre of land. If you’d like to build some of those houses on an acre of land in Georgetown, I’ll give you the land,’” Meringolo said. “So, that’s how Georgetown came about.”

That single act of generosity set off a chain reaction — one that Meringolo hopes could serve as a model for the entire region.

The site is now being developed into a 20-home rental community, with 10 homes on each of two adjacent acres, after a second landowner offered another acre. Rent will be $850 per month for a one-bedroom and $1,000 for a two-bedroom, with utilities included.

“Every single house is sold at what it costs us to build them. There is no markup. We’re not builders. We’re not developers,” he said. “Everything is for the person living there.”

Looking ahead to its Milford development, which will include about 200 homes, the nonprofit plans to offer a few purchase options.

“We’re going to sell those same houses for $85,000 on the one-bedroom, the two-bedroom will be selling for about $100,000, and we have a three-bedroom model that will sell for about $120,000,” he said.

A rent-to-own option is also in development for that future Milford community. Tenants would pay slightly higher monthly rent, with a portion banked toward a down payment.

“If a person wants a rent-to-own, the rent for that person will be $1,250 a month. $250 of that will go into [an] account … At the end of three years, that is up to $9,000,” he said. “We have a credit history because they paid their rent every month.”

Little Living targets working families and individuals earning between 40% and 70% of Delaware’s area median income — roughly $35,000 to $60,000 annually.

Qualifying for a home is simple, only requiring steady employment and a modest credit score.

“We’re looking for people who are either disabled veterans who need a small place to live, or who are one-bedroom. Or seniors that maybe have lost a spouse and with their Social Security, they can’t afford to pay the rent that they’re paying now, or they can’t afford their house,” Meringolo said. “And then lastly, we’re looking for working families. You know, with mom and dad, with a couple of kids. That’s the two-bedroom.”

From Georgetown to the region

While the Georgetown community came to life after a chance phone call from a local landowner,  that donation snowballed into what could become a model for the entire region.

Two units are already nearing completion. Support has been growing, not just locally but at the state level.

“We’ve already been approved by Georgetown. We’ve already got two houses almost completed,” he said, adding that DelDOT has also approved the project. “I think it’s just divine intervention … We’ve already met with the governor. He’s been a big supporter of this project.”

Interest from the town has been strong, too, with more than 50 prospects asking how they could get a place.

‘We are the solution’

Meringolo makes one thing clear: The time for just talking about how to address the affordable housing crisis is over.

“People have been talking about finding affordable housing for the last 20 years. Have you seen any that’s really affordable?” he said. “I’m tired of hearing this talking. There is no talking here. All we’re doing is doing.”

The formula, he said, is simple.

“We need two things: land and donations,” he said. “If someone’s got a piece of land, call me. If someone wants to help, donate.”

And he’s thinking well beyond Sussex County.

“I expect to expand this beyond Georgetown, beyond Milford. I can see this happening in Pennsylvania … in Virginia, especially on the Delmarva portion,” he said. “We are the solution.”

The ultimate goal is to have the Georgetown site completed and occupied by mid-2026. The effort is already gaining traction, drawing attention from state officials. Delaware’s Gov. Matt Meyer is expected to attend a ribbon-cutting ceremony at the site this June.

This story was supported by a statehouse coverage grant from the Corporation for Public Broadcasting.