Besides being affordable for people with meagre incomes, the new houses are environmental friendly.
Jay Shafer's Tumbleweed Tiny House company makes cute little homes that start from the bargain price of $99. The cheapest home is a flat-pack to be built by the owner but, if you're not very handy, there are ready-made versions for $38,997, the Daily Mail reported.
The small homes, which start at just 65 square feet are kitted out with fully functioning kitchens, bathrooms complete with composting toilets and sleeping areas.
Some of the models even come on wheels.
As the debt problem in the US reaches tipping point, Shafer, who lives in one of his houses in Sebastapol, California, says that less can be more.
"People spend 30 years or more paying for all this space and stuff that they don't really need," he says.
"I wanted a place that would maintain my serene lifestyle, not a place that I would spend the rest of my life maintaining. I find nothing demanding about Tumbleweed. Everything's within arm's reach and nothing's in the way-not even space itself."