Our homes have been getting bigger. Over the past two decades, the average per capita living space in Europe has grown significantly. While more space may seem like an indicator of prosperity, larger homes mean higher energy use, greater material consumption, and increased carbon emissions. Since the 1.5°C-aligned living space is around 30 m2, living smaller is a powerful solution if we are serious about reducing our environmental footprint.
In the EU 1.5° Lifestyles project conducted across five European countries—Germany, Hungary, Latvia, Spain, and Sweden—we explored how people perceive smaller living, the effects of downsizing, and what structural changes could support this transition. The findings reveal both challenges and opportunities in embracing a more compact lifestyle.
Why do people hesitate to live smaller?
Despite the environmental and financial benefits, many Europeans are reluctant to downsize voluntarily. In the project, we organized multiple cross-country workshops with citizens to discuss various lifestyle changes, one of which was smaller living. The citizens revealed several barriers that make it difficult to embrace this shift.
A key challenge is how homeownership is perceived—many participants viewed their homes as long-term investments, making downsizing a financially uncertain decision. Social norms also play a role, with a widespread perception that a larger home equates to success and comfort. One participant in the citizen thinking lab shared, "From a young age, we are taught that owning a large home is a symbol of success."
Many people also worry that smaller homes or shared spaces will limit their autonomy and privacy. In urban areas, suitable smaller housing options available on the market are not always affordable, well-designed, or located in desirable neighborhoods, adding another layer of reluctance.
The surprising benefits of living smaller
While people initially feared downsizing, those who had already made the shift highlighted several unexpected benefits. Downsizing solutions included both moving to a smaller home or downsizing your personal living space by sharing your existing home with others, such as through renting out a room. Many participants expressed that smaller homes or co-living solutions require less cleaning and maintenance, giving them more time for leisure activities and social interactions. Besides this, lower living costs from reduced rent, energy bills, and maintenance expenses also freed up financial resources for other priorities.
Another key finding from the citizen lab was that living in denser living arrangements or co-housing arrangements can foster meaningful social connections, provided good, shared amenities are available. One participant of the citizen lab shared, "I spend more time outside in my community and less time worrying about my home." Downsizing also often allows people to live in better-served neighborhoods with good access to public transport, green spaces, and social infrastructure, leading to an overall improved quality of life.
What needs to change?
For more people to embrace smaller living, systemic changes are required. Findings from academic studies and our citizen labs highlight several key factors that could make compact housing or co-living more attractive and accessible.
A more flexible housing market is essential, with policies that facilitate easier relocation, housing exchanges, and rental security to help people transition to smaller homes or to facilitate co-living solutions. Urban planning must also adapt, ensuring that shared amenities like communal kitchens, co-working spaces, and green areas can compensate for reduced private space.
Shifting cultural norms is equally crucial, and policymakers can help change such normative narratives. Governments, urban planners, and media must challenge the idea that bigger is always better and instead showcase the benefits of well-designed compact housing. It should also be emphasized that downsizing is not a one-size-fits-all solution. There are different solutions: relocating is just one option, and opening your home to share it with others through renting is another. At the same time, fair policies must be in place to ensure that downsizing is not driven by economic hardship but by a genuine desire for better living conditions. Affordable housing and financial incentives can help ensure that smaller living is an option for everyone.
Towards a new vision of home
Living smaller does not mean sacrificing quality of life. With thoughtful design, supportive policies, and cultural shifts, compact living can be comfortable, affordable, and sustainable. By rethinking what we truly need in a home, we can create spaces that are more environmentally friendly and better suited to our evolving lifestyles.
Oksana Mont
Professor in Sustainable Consumption and Production
International Institute for Industrial Environmental Economics, Lund University
Reference:
Lehner, M., Richter, J. L., Kreinin, H., Mamut, P., Vadovics, E., Henman, J., Mont, O., & Fuchs, D. (2024). Living smaller: acceptance, effects and structural factors in the EU. Buildings and Cities, 5 (1), 215-230.
https://doi.org/10.5334/bc.438