I bought a magazine about eco-housing this week and it had an article about small cheap housing. I really think the tiny house looks excellent. It uses less stuff to build, heat etc. You have less space so are obliged to have less stuff. The idea that it is cheaper also means less time working to pay off loans. Some of them have lots of glass which makes them feel spacious. A tiny house combined with a covered area outside and a greenhouse would be the ultimate in green living. I have been drawing plans, it would be great to build one in the garden. That said we already have more building than we use, we don't always think we have enough space! We had been talking about expanding over the stable so Flo could have her own room, maybe we just need to look at things in a new light and start some serious clutter clearing.
I found a blog about tiny homes which shows lots of great examples.