As Americans downsize in the aftermath of a colossal real estate bust, a small but growing number of Americans are buying or building homes that could fit inside many people's living rooms. "It's very un-American in the sense that living small means consuming less," says Jay Shafer, co-founder of the Small House Society. "Living in a small house like this really entails knowing what you need to be happy and getting rid of everything else." Compared to trailers, these little houses are built with higher-quality materials, better insulation and eye-catching design. But they still have wheels that make them portable and allow owners to get around housing regulations for stationary homes.