Tiny House Movement Thrives Amid Real Estate Bust

Living small: Tiny house movement thrives as more Americans downsize amid epic housing bust

As Americans downsize in the aftermath of a colossal real estate bust, at least one tiny corner of the housing market appears to be thriving.

In a country where most people want to live large, Schafer helps people live small. The California home builder has become a leader in a small but growing corner of the American housing market: the tiny house. Schaefer, who lived in a 89-square foot house with his wife before his son was born last year, builds houses that are smaller than most people’s living rooms.

To save money or simplify their lives, a small but growing number of Americans are buying or building homes that could fit inside many people’s living rooms, according to entrepreneurs in the small house industry.

Some put these wheeled homes in their backyards to use as offices, studios or extra bedrooms. Others use them as mobile vacation homes they can park in the woods. But the most intrepid of the tiny house owners live in them full-time, paring down their possessions and often living off the grid.

“It’s very un-American in the sense that living small means consuming less,” said Jay Shafer, 46, co-founder of the Small House Society, sitting on the porch of his wooden cabin in California wine country. “Living in a small house like this really entails knowing what you need to be happy and getting rid of everything else.”

Shafer, author of “The Small House Book,” built the 89-square-foot house himself a decade ago and lived in it full-time until his son was born last year. Inside a space the size of an ice cream truck, he has a kitchen with gas stove and sink, bathroom with shower, two-seater porch, bedroom loft and a “great room” where he can work and entertain — as long as he doesn’t invite more than a couple guests.

He and his family now live in relatively sprawling 500-square foot home next to the tiny one.