There are many reasons the market for small homes is growing. Price is a big one, but the trend toward paring down, living in a way that makes less impact on the earth, and transitioning through various life changes are all factors, as well.
We have been partnering with real-estate analytics site NeighborhoodX this year to is take a close look at sales price ranges in different Austin neighborhoods, ranking asking prices on a per-square-foot basis; this list grew out of that analysis.
The smallest properties for sale in Austin right now range from 350 to 500 square feet and include studio and one-bedroom condos as well as compact bungalows
The prices for these tiny units range from $114,999 (1840 Burton Drive #161 in Riverside) to $299,000 (1902-1/2 Garden Street in Holly).
On a per-square-foot basis, the asking prices range from $247/square foot (1840 Burton Drive) to $607/square foot (1902-1/2 Garden St.)
Here's a chart and a map for your further perusal of the subject.
Note: Map locations are in order from largest to smallest home.