Recent economic difficulties have forced everyone to make difficult decisions when it comes to the family budget. Many people are downsizing everything in their lives, from the cars they drive to the houses they live in. For some, the move to tiny homes is about saving money, but for others, the opportunity to live a simpler life is a big draw.

The average size of a small house is between 100 square feet and 400 square feet. By comparison, the average size of new homes built in the United States in 2013 was approximately 2,600 square feet. A compact living space is appealing to people of all ages, including college graduates, honeymooners, and retirees.

One of the most obvious advantages of such a small house is that the owner does not need a large plot of land. The house is portable enough to be moved virtually anywhere. Manufacturing costs are low because builders don’t need as much material and assembly takes fewer hours. That translates to a significantly lower price tag that makes it affordable for more consumers. Tiny home owners don’t have to worry about signing up for a 30-year mortgage just to have a roof over their heads.

The savings continue long after you move into this type of home. They are much less expensive to heat and cool than a house that covers a couple thousand square feet. Miniaturized appliances cost less to buy and require fewer resources to operate.

Traditionally, new construction puts pressure on the Earth’s natural resources. Moving to a tiny house is especially attractive for those who want to reduce their carbon footprint. Due to their size, many of these houses are built with recycled materials. Once built, they are energy efficient and produce less waste.

Tiny house designs make the most of the available space. Hidden storage cabinets and cubbies take advantage of areas that are normally wasted. Without extra space, occupants are less inclined to hoard possessions they don’t really need. Without the clutter, rooms look and feel bigger than they really are. Reducing impulse buying means less waste, less money spent, and more money saved.

Many people find that they lead a better quality of life after eliminating unnecessary possessions. They lose the desire to buy status items just to keep up with their peers. They feel less stressed and receive more happiness from the little things in life that are more important in the grand scheme of things.

A smaller house means less time spent on maintenance and cleaning. Instead of taking hours to dust, vacuum and wash windows, it only takes a few minutes to clean the entire house from top to bottom. This means spending more time with family and enjoying life.

Despite all the benefits, living this type of lifestyle is not for everyone. Before committing to living in a tiny home, people should weigh their options and consider the downsides of downsizing to a few hundred square feet of living space. Probably one of the biggest problems is deciding which possessions to keep and which to sell, donate, or throw away. Difficult as it may be, many people find this process liberating once they get through it.

Living in smaller spaces requires a high level of organization. A little clutter goes a long way in a small space. Someone who can’t stay organized will quickly become overwhelmed. The house will become more like a storage closet and lose all its appeal.

Someone who loves to entertain guests at home will have a hard time following this lifestyle. Accommodating additional people inside will be challenging, if not impossible. Depending on the weather and time of year, homeowners may consider entertaining guests outdoors. Creative use of outdoor space is an effective way to increase the amount of usable space available. A porch or deck offers a comfortable place to barbeque, dine, or just kick back and relax weather permitting.

The reasons people choose to move to smaller homes are personal, but many are looking for simple living and a way to escape living paycheck to paycheck. The satisfaction of being self-sufficient is another thing people gain when they downsize their living space. Moving to a tiny house can be the ideal solution for someone who wants to achieve financial freedom while living an environmentally friendly lifestyle.