If you are thinking about building a small house, hooray for you!
Building
 a small house has many advantages. For starters, small houses cost 
less. First, there is the expense of construction. Building costs are 
typically measured by the square foot. If construction costs in your 
area are $200 per square foot, a 1,200 square foot home will cost 
$240,000. A 1,500 square foot home will cost $300,000. Just a small 
increase in area, adds quite a substantial amount to the construction 
cost. Money saved = fewer hours working to pay off that mortgage!
Small
 houses also cost less over time. If you pay property tax, your annual 
tax bill will be smaller because just like construction costs, property 
taxes are derived from the home's square footage. Maintenance?, it will 
be less. With less volume to heat and cool, lower utility bills.
Small
 houses are easier to clean. I mean really, who wants to spend all 
weekend cleaning their house? Clutter is not a pretty thing in a small 
house, there just isn't room for it. If you are moving into a small home
 from a larger one, you really have to spend some time thinking about 
what is of value to you and what isn't. It might be hard at first, 
imagining your life without all the things that you've become accustomed
 to, but living with less can be a rather freeing experience. You learn 
what works and what doesn't and you don't spend time on the things that 
don't work.
Small houses are perfect for those small or unusual 
urban lots. In many cities there aren't big lots available, never mind 
that big lots are more expensive. A lot that is always overlooked 
because it is small or oddly shaped might be just perfect for you, 
especially if it has great views and is within walking distance of the 
things you love.
Small houses aren't as attractive to thieves. 
Maybe it's because it's obvious that you can't fit too many large screen
 TV's into your house.
With fewer TV's and physical proximity to 
each other, it's likely that your family may develop a closeness that 
you wouldn't otherwise enjoy. Parents may also appreciate knowing what 
the kids are doing and knowing where they are.
It's possible to 
pack more quality into a smaller home. Covering every square inch of a 
big kitchen with granite and tile is a lot more expensive and difficult 
than doing the same thing in a smaller kitchen. Same holds true for all 
the other rooms.
I encourage you to consider building the smallest
 house that will work for you. There really isn't a reason to build big 
if you don't need it. A big house may impress the neighbors, but the 
question worth asking is do you really need all of that space and what 
is it going to cost you in terms of time, money and quality of life?
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