Near FSU somebody constructed tiny houses, several dozen on a lot that formerly had a single family residence. I have three tool sheds full of materials that are larger. I suppose if all you own is some clothing and an iPhone you can live there. I have a full compliment of plumbing, concrete, electrical and other types of tools. Plus, I have several cars and all the stuff required to work on them.
I rent seven homes and what I’ve noticed is renters live stuffed in with twenty times more “stuff” than I have. Mostly, useless stuff. Several are renting storage facilities and literally pay for their stored stuff over and over.
“Modern” Soviet style housing simply doesn’t work for people. The thinking is similar to, “people don’t buy small cars because manufacturers don’t make small cars. Therefore we’ll force manufacturers to make small cars by penalizing mileage.” Then, people buy trucks and SUV’s.
The natural market for tiny houses is young people who have not yet accumulated “stuff.” The question is, how many of them will be interested in committing to a non-acquisition lifestyle in the long term? I suspect that there may be a fair number, especially in big cities where housing costs drive long commutes for non-rich people who need space. Downsizing is hard, but if you live stripped down from the start, accepting the discipline is easier.