Could You Live in a 120-Square-Foot House? [View all]

[Tuesday Afternoon]

By Susan Johnston | U.S.News & World Report LP – 2 hours 32 minutes ago

Sage Radachowsky's 120-square foot house. (Photo: gypsyliving.org)When Kerri Fivecoat-Campbell and her husband moved from Kansas City to a 480-square-foot lake house in Northwest, Ark., they'd planned to build a larger house on the same property and use the existing house as an office and guesthouse.

Yet the recession convinced the couple to stick with the house they had and build another small space as an office and guesthouse. Fivecoat-Campbell says they're happy with a smaller footprint. "We live in an area where recreation is a big thing," she adds. "We like to be outdoors and spend time with the dogs and not have to maintain a big house. It's easier to take care of."

The constant upkeep and high expense of McMansions have made smaller homes appealing to many Americans. "People realize now if they live in a tiny house, they have more money left over to pay for other things," says Derek Diedricksen, a maker of small houses in Stoughton, Mass., and author of Humble Homes, Simple Shacks, Cozy Cottages, Ramshackle Retreats, Funky Forts: And Whatever the Heck Else We Could Squeeze in Here.

Costs for tiny homes can vary depending on factors like the materials and complexity of the design. "There are people who've gone out and built a modest house for $5,000 to $10,000 using Craigslist or free materials, but there are some that are more high-end, like rustic cabins," says Diedricksen.

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http://finance.yahoo.com/news/could-live-120-square-foot-162708227.html