The tiny house trend has taken off across the U.S. over the last couple of years, especially in densely populated cities such as San Francisco and Seattle. But the trend is having a difficult time finding a niche in Arizona, according to the Daily Miner.

Sometimes referred to as micro-housing, tiny housing is usually defined as a house or living space that is larger than 300 square feet but smaller than 500 square feet. Though Phoenix does have a handful of permanent micro-housing communities, and other areas like Northern Arizona have communities like Luxtiny which offer homes ranging between 160 and 399 square feet, the trend faces difficulties establishing itself in the state.

Several factors may be determinants to tiny housing in Arizona. One is necessity: Though cost savings of tiny houses appeal to buyers, lack of buildable space isn’t an issue and there are too many other affordable options in Phoenix to make the trend a top choice.

Another reason is lack of investors for developers. Because of the small scale, the city hasn’t deemed a need for incentives. Banks are reluctant to finance projects because they don’t meet housing code requirements, such as ceiling heights, leaving the cost burden on the developer alone. This also affects the buyer, who is often unable to finance through a typical home mortgage, paying out-of-pocket, or through an unconventional loan through a bank.

Finally, one would think the scale of these homes would leave less paperwork and necessary permits with the city but the opposite is true. Phoenix architect Christoph Kaiser told the Miner the amount of bureaucracy developers go through “is the same for a master bedroom or bathroom addition as if you’re building a 4,000-square-foot house.”