29 photos of tiny living spaces that highlight the global affordability crisis

"Cities around the world are facing growing housing demand, and rent is increasing on a global scale. People live in micro apartments, cage homes, and other small spaces as a result. In the US, tiny home villages are trying to address homelessness. In 2026, the affordability crisis is touching every aspect of daily life. At the grocery store, inflation has driven up the costs of products like beef, while people around the world have been feeling the strain of the war in Iran at the gas pump and in other parts of their lives."

"Business Insider's James Rodriguez recently reported on the “new homeowner penalty” in the US, a phenomenon in which new homeowners are paying a larger share of their income on housing than previous generations. From 2019 to 2024, the average household income in the US grew by less than 1%, while the average down payment on a home increased by 30%. Economic hardships like these are being felt around the world, leaving many people in some countries with no choice but to rent uncomfortably small living arrangements."

"For others, building new tiny homes has become a way to combat rising costs and social issues such as homelessness. While nonprofit organizations are constructing affordable micro-apartments, some architects and designers are creating their own tiny homes for personal use. From New York to Hong Kong, see people's tiny living spaces in photos. Kong Siu-kau, 63, sits in his cage bed in Hong Kong in 2009. Bobby Yip/Reuters"

"As the global population increases and the number of renters is on the rise, some cities such as Hong Kong and San Francisco have seen a surge in the construction of tiny, more affordable homes and apartments. Some units are small"

Cities worldwide face rising housing demand and increasing rent. People live in micro apartments, cage homes, and other small spaces as affordability worsens. In the US, a “new homeowner penalty” leaves new homeowners paying a larger share of income toward housing, as household income growth lags behind down payment increases. Similar economic hardships push people in some countries to rent uncomfortable small arrangements. Others respond by building tiny homes to reduce costs and address homelessness. Nonprofit groups construct affordable micro-apartments, while some architects and designers create tiny homes for personal use. Cities such as Hong Kong and San Francisco have seen increased construction of tiny, more affordable units as renters rise.

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