May 9, 2025
When Jen Gressett’s 18-year marriage ended in 2018, she didn’t just need a new place to live — she needed a fresh start. But after selling her 3,000-square-foot home near Boulder, Colorado, she found that traditional housing options were simply out of reach financially.
So she got creative. Inspired by the tiny home trend she’d seen on social media, Gressett decided to build her own compact dream home from the ground up.
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Today, she lives in a 520-square-foot luxury tiny home on wheels parked in someone’s backyard. Her $725 monthly housing cost covers rent, utilities, internet and water — a far cry from the expense of her previous home. While downsizing was initially a daunting idea, it’s now what she says makes her feel more content than ever.
“When I lived in the bigger house, I’d constantly buy things that I never ended up using,” she told CNBC. “They took over drawers and spare closets. Our basement looked like a junkyard.”
How less space leads to less stress
Like many people considering a downsized lifestyle, Gressett was initially overwhelmed by the idea of getting rid of most of her belongings. Her biggest fear? Not having enough room.
But she quickly learned that much of what she owned wasn’t actually serving her.
“I had a walk-in closet full of clothes and shoes, but I realized I only wore about 30% of them,” she said.
She donated eight large trash bags full of items and felt immediate relief. Since then, she’s changed her mindset. If something doesn’t have a designated place in her home, she simply doesn’t buy it.
That shift also changed how — and where — she shops. Gressett used to rely heavily on Amazon. Now, she makes a conscious effort to buy locally, cutting down on packaging waste and supporting small businesses. She’s even shrunk her trash output dramatically: from wheeling out a dumpster-sized bin every week to managing with just a 13-gallon kitchen trash can and an equally small recycling bin.
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Despite the limited space, her home still supports the lifestyle she loves. The kitchen is the largest part of the house and includes clever built-ins like pull-out cabinets and hidden compartments. It’s where she cooks homemade pasta with her kids and entertains friends — up to five at a time.
And cleaning? It now takes less than an hour.
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Want to go tiny? Here's what to consider
Gressett’s lifestyle works for her — but that doesn’t mean a 520-square-foot home on wheels is right for everyone. Before downsizing consider:
- Your family size and lifestyle: If you have kids or live with a partner, think about how much private space you’ll need. Will everyone be able to work, sleep and unwind comfortably?
- Your hobbies and work setup: Are you a remote worker like Gressett, who uses her dining table as a desk? Or do you need a dedicated office space?
- Your storage needs: Downsizing requires a major purge. Ask yourself if you’re ready to part with items that may have sentimental value or long-term utility.
- Your budget and goals: Tiny homes can be cost-effective in the long run, but up-front costs (like Gressett’s $175,000 build) can be steep. If you’re renting a tiny home, factor in location and amenities.
Smaller homes generally mean lower utility bills, less maintenance and reduced consumption too. Gressett’s $725 monthly housing cost is drastically lower than the average rent in Boulder, which hovers around $2,300 — saving her more than $1,500 a month. Over time, those savings add up.
And it’s not just the rent. By limiting impulse shopping, she’s been able to cut back on unnecessary spending — boosting her savings and peace of mind at the same time. Downsizing is as much a mental shift as a physical one. For Gressett, it’s been a pathway to gratitude, simplicity and independence. Her advice to anyone curious about tiny living?
“Start by asking yourself where you spend most of your time, and focus on that first.”
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
