Tara Lohan at Alternet suggests that the economic downturn is contributing to a cultural shift in terms of our aspirations for housing and neighborhood locations.
According to Lohan, the McMansion era is over. Instead, developers touting small -- and even micro 100 square foot -- houses are showing gains. The reason, says Lohan is that
"for a growing number of people even 2,000 square feet is too much space and so they're saying goodbye to the albatross of expensive mortgages and buying into the 'tiny house movement' instead. This movement focuses on how much space (and stuff) we actually need, instead of how much we want or think we're suppose to want. Between 2007 and 2009 first time home buyers made up 41 percent of the market and the National Association of Home Builders reported that these buyers were purchasing houses that average only about 1,800 square feet -- considerably smaller than the national average. And it turns out, it's not just first timers that are getting smart about saving money and doing more with less space, as Baby Boomers are finding themselves with empty nests, and some with tightened retirement funds, downsizing is becoming more popular.
As people have become more inclined toward smaller spaces, they've also become more aware of energy efficiency [and] are increasingly preferring to live in walkable neighborhoods and are passing up houses in car-dependent suburbs."
FULL STORY: Downsize Nation: Welcome to the New, Smaller American Dream

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