In recent years, housing has become more expensive from almost every direction. Energy, construction and material prices are rising, inflation is driving up everyday living costs, and mortgage repayments weigh on household budgets for decades. Households themselves are changing too. Children move out, more people live alone, families go through divorce, and a large house that once made sense can gradually become expensive and empty.

Making housing more affordable therefore does not simply mean looking for cheaper materials or waiting for subsidies, which are also being gradually reduced. The greatest savings begin with deciding how much space we actually need, how it will be arranged and whether it can change over the course of our lives. After all, the cheapest square metre is the one we do not have to build, heat, clean, repair or pay off.

Start with real needs, not an image of the ideal home

The size of a home is often determined by social expectations rather than everyday life. A house is expected to have a large living room, a guest room, a home office, a walk-in wardrobe, a pantry, two bathrooms, a double garage and plenty of storage for things used only a few times a year. Yet every such requirement increases the size of the building, the cost of the land, the mortgage and future running costs.

For an average family, a house of approximately 80 to 120 m² on a 300 to 600 m² plot can work well. A semi-detached or terraced house is worth considering, as it can reduce the necessary floor area even further. A comfortable flat may have 60 to 80 m², but with an intelligent layout it is possible to live well in a significantly smaller space. One example is a family of five who moved into a 37.5 m² flat and, with the help of skilled architects, managed to make it work as a home. What matters is not the number of square metres alone, but whether every one of them is used well.

When designing a home, it is useful to base decisions on an ordinary week rather than a few exceptional events each year. Two family celebrations do not justify permanently heating a large dining room, and an occasional visitor does not necessarily require a separate guest room. Extra space can be shared or rented for a short period, or created by temporarily transforming another room.

A compact, simple house costs less

The least expensive buildings generally have a simple form, a straightforward structure and few bespoke details. A compact rectangular volume is more economical than a house full of bay windows, recesses, corners and extensions. A two-storey house may cost less than a sprawling bungalow with the same usable floor area because it requires smaller foundations and a smaller roof.

With older houses, it is worth checking whether a loft conversion is really necessary. An unconverted attic can serve as inexpensive, unheated storage while also helping protect the living areas below from overheating. Conversely, various additions from the past, poorly usable extensions and makeshift structures can complicate the way a house works. Removing them can sometimes simplify the building, bring in more light and reduce maintenance costs.

During a renovation, removing part of a building can create a new quality: an arcade, a covered terrace or a transition between the house and garden. This is not merely about making the house smaller, but about exchanging expensive interior floor area for less costly and enjoyable outdoor space. Likewise, one large old house can be converted from a single dwelling into two homes, or a cleverly redesigned one-bedroom flat in a prefabricated apartment block can become a practical three-room home with a separate kitchen.

Fewer corridors, more usable rooms

A well-designed floor plan can provide the same quality of life within a smaller area. The key is to minimise corridors and other circulation spaces, which have to be built and heated but cannot truly be lived in. A more open, free-flowing plan can connect the living room, dining area and kitchen, allowing different activities to overlap naturally.

A bedroom does not have to be large if it is used mainly for sleeping and storage is handled efficiently. A walk-in wardrobe can be replaced by a wall of fitted cupboards, a pantry by a well-designed food cupboard, and a second bathroom by a separate toilet. Instead of designing several rooms with distinctly different sizes and purposes, it is useful to create rooms of similar dimensions. The same room can then serve at different times as a child’s bedroom, home office, guest room or space for a carer.

Savings do not come from shrinking rooms alone. Sometimes the same building volume can accommodate more genuinely usable rooms simply by positioning doors, furniture and windows more effectively. A detailed plan of furniture and the way people move through the home helps achieve this. Every area should have a clear purpose and, where possible, more than one use.

Sharing functions reduces the space required

Many spaces and objects are used for only a small part of the day or year. This is where sharing makes sense. A guest room can double as a home office, a dining table as a workspace, and a terrace that can be enclosed as a seasonal living room. Functions can change over time without requiring a separate room for each one. Japanese homes take this idea even further: even the bedroom is viewed as a night-time function, allowing the same room to be used as a dining or sitting room during the day.

Even greater savings can come from sharing between households within a neighbourhood, condominium association or row of terraced houses. A shared laundry, workshop, storage area, guest room, coworking space, garden equipment or visitor parking can replace several rarely used private spaces. Nor is it necessary to own every piece of seasonal equipment. Tools, sports gear, tents and party supplies can be borrowed or rented for short periods. In a row of terraced houses in particular, there is no need for every household to own a lawnmower for a 50 m² garden.

Anything that does not need to be inside the building’s thermal envelope can be provided more cheaply. Bicycles, garden equipment and seasonal items can be kept in a simple unheated store. A car can be protected by a carport instead of a heated garage—or a household can use public transport and cycling without owning a car at all, renting one inexpensively for holidays or moving house. Every unheated square metre reduces both construction costs and long-term energy bills.

A house must be able to adapt to life

A household is not fixed. A family may grow, children may leave home, partners may separate, someone may begin working from home or need care. A house designed for only one brief stage of life can later become too large, too small or poorly suited to its occupants’ needs.

The ability to divide a house into multiple flats is therefore valuable. During construction or renovation, provision can be made for a second entrance, additional utility connections and separate metering. Part of the house can later serve adult children, grandparents, a carer or tenants—much like the traditional Czech vejmínek, a small separate dwelling for the older generation. Multigenerational living can share the land and technical facilities while still providing each household with sufficient privacy.

Another option is to build only the part of the house that the household actually needs at first, while allowing for a sensible extension in the future. Phased construction must, however, be carefully planned from the outset. The first phase should be a fully functional, completed home—not a temporary arrangement surrounded by unfinished structures for years.

When a large home no longer makes sense, moving somewhere smaller is a legitimate solution. It may be better both financially and psychologically to leave a house whose running costs, cleaning and repairs consume most of one’s time and money than to preserve the original way of life at any cost.

A good house first, technology second

Running costs are best reduced through a high-quality, simple foundation: an appropriate size, a compact form, a well-insulated building envelope, suitable orientation, natural shading such as roof overhangs, canopies or external blinds, and the ability to ventilate effectively—for example, through windows on opposite sides. Only then does it make sense to add technology.

A complex smart home or flat is not automatically economical. Every device has an upfront cost, requires servicing and will eventually need to be replaced. Passive measures such as roof overhangs, external shading and well-positioned windows usually last longer and require less maintenance. Technology should therefore address a specific need and have transparent running costs, rather than simply forming part of an expected standard.

Repairability is equally important. Accessible utilities, standard products and durable materials may look less impressive than bespoke solutions, but they can greatly reduce future repair costs. Decisions should consider the cost of the entire life cycle, not just the purchase price. A solid oak floor may cost three times as much, but over its lifespan a laminate floating floor might need to be replaced five times. Oak can also be sanded down, reused elsewhere and is not made of plastic.

Location can save more than a cheap plot

The true cost of housing is not limited to mortgage repayments. It also includes energy, maintenance, transport and time. A cheap plot or flat far from work, schools, shops and public transport may require two cars and daily commuting. A smaller flat or house in a better-connected location may therefore be cheaper overall than a large home on the outskirts.

When choosing a plot, it is also necessary to account for the cost of utility connections, an access road, earthworks and retaining walls. Studies have even found higher divorce rates in newly built neighbourhoods of detached houses because travelling everywhere by car takes so much time that families have little opportunity to see one another.

Downsizing is not giving up, but a conscious choice

Smaller homes are also connected with environmental thinking and minimalism as a way of life. Building less floor area means using fewer materials, consuming less energy and owning and maintaining fewer possessions. At the same time, it can leave more money and time for life beyond the home. The absence of a private garden can be offset by a small front garden, a green terrace or a community garden near the flat—as well as by frequent trips to see friends or glamping holidays.

The goal is not to create the smallest possible space at any cost. A home that is too cramped or inflexible may soon force its occupants into another expensive renovation or move. The aim is to remove floor area, structures and technologies that do not provide corresponding value, and to focus resources on what genuinely improves the quality of everyday life.

Good affordable housing is not inherently large or small. It is appropriately sized, simple, adaptable and easy to operate. Every square metre serves a purpose today and can find a new one tomorrow.