Small homes and clutter are not synonymous. Walking into a 700-square-foot living space can (and should) feel like entering a spacious oasis with all the necessities for cosy, practical, and enjoyable living.

Bearing this in mind is now more important than ever. According to a recent NY Times report, smaller homes are the future of housing now that mortgage rates have reached a two-decade high. As a result, denser communities of duplexes and small-lot homes are on the rise. A recent John Burns Research and Consulting survey found that hundreds of architects forecast a significant decrease in their average house size.

This however, should not deter interior designers—interior design is not about how big the house is, but how you make it feel like home.

Unfortunately, though, it’s much easier said than done. Navigating the upturn in smaller canvases is nothing short of challenging for interior designers. In 2024, designers are forced to find their feet  in a turbulent market. Is there any need to hire an interior designer to decorate such a small space?

The answer, thankfully, is yes. The sharp incline in small-space living does not stem from a disinterest in a nice home. In reality, people are adjusting to the current state of the economy. Increasing housing costs, and growing populations make homeownership a reserve of the wealthy, but that doesn't mean comfortable, stylish living has to be compromised too. Simply put, interior design is not a dying profession but one ready to evolve.

There are a million reasons why an interior designer's services are just as valuable in today's market as ten years ago—the trick is convincing the public of the same and learning how to adapt accordingly. With the influx of small homes, interior designers find themselves in unfamiliar territory. How can interior design businesses adapt and cater to the shrinking homes trend? Our advice: get creative, adapt to the needs of small space occupants, and accommodate your services and practices to fit the current homeowners market.

Why are homes shrinking?

Shrinking homes do not mean shrinking opportunities for interior designers. However, it does entail catering to a new market of homeowners—homeowners eager to make their new spaces both practical and personal.

For every homeowner putting their house on the market and comprising square footage for small-space living is a million reasons to do so. From financial considerations to sustainability issues, there is plenty of conversation to be had surrounding the benefits of owning a small home. For an interior designer, walking away from every one of these small-space projects with a sense of fulfillment and satisfaction—for both you and your client—is priority. Understanding the motivations behind this trend is key. For just a moment, let’s put ourselves in the shoes of these down-sizers.

Millennials, a generation riddled with student debt, are running on a treadmill. It's hard to get ahead when the cost of living is increasing at a faster rate than average income, according to a 2022 Economics Observatory report. In short, its no surprise that this generation of homebuyers are downsizing—for many, smaller homes are the only affordable way to get on the property ladder in the current housing market. For others, opting for small-space living offers financial freedom and a means to indulge in their passions—a generation of avid travellers and social butterflies still need a cosy place to call home. Recent retirees also make up a majority of tiny house owners globally. Smaller homes are more affordable and easier to maintain for older individuals or couples who no longer need the excess space. Naturally, comfortability and accessibility are key to making a baby boomer's house feel like a long-term home. But, they can't achieve this on their own.

Jamie Dibble, longtime artist and Channel 4's Big Interior Design Battle finalist, has witnessed this trend trickle its way into the interior design industry firsthand, and in fact attributes much of the shrinking homes trend to our collective shifting attitude to sustainability, "The way we live these days is changing all the time. I think there's a few different reasons people are opting for small space living… our effect on the environment is  becoming more and more important to people and I think this is forcing us to take a long hard look at how we live, how wasteful we can be and what we can do better. Not to mention the cost of energy these days are all over the place- let's face it, winters can be harsh but no harsher than the cost of heating a big old house!"

Regardless of reasoning for living in a smaller square footage, small home dwellers share a common desire for a simpler life and a beautiful home. How can an interior designer make their homes reflect this feeling of simplicity to make themselves desirable in the new housing market?

How does less become more?

Small spaces need big thinking. To make interior design services valuable in the current housing market, creativity and innovation must be an integral part of the offering.

With small-space living comes new demands. A small room cannot be designed in the same way that a grand and spacious one is. According to Jamie, the key to making smaller rooms work is seamlessly combing comfort and function, "Creating really smart, functional designs for these multifaceted rooms without compromising on the beauty of the overall design is really important."

Functional design requires a defined understanding of the desired function of the space, which is why Jamie stresses that despite the quicker turnaround of small projects, a deep understanding of your clients is still of paramount importance—perhaps even more so compared to a larger project!

Whilst Jamie might be taking on an increasing number of clients living in smaller spaces, they certainly don't come with less baggage—Jamie observes, "One thing that hasn't changed is our love of stuff!" If there's one thing Jamie's years of experience have taught him it's the importance of finding unique and hidden storage opportunities in every room.

Working with limited room and storage space makes capturing the flow and feel of a home tricky. In a small home with limited space, Jamie explains that all rooms need to be multifunctional, "While smaller properties can be beautiful, it does mean each of the rooms now need to work that much harder to be functional. Creating really smart, functional designs for these multifaceted rooms without compromising on the beauty of the overall design is really important. That's been my biggest challenge lately! "

If rooms themselves have multiple functions, so too must the furniture within them. Finding the right manufacturers can make or break a project. Without innovative furniture, interior designers cannot deliver clients the pretty yet practical homes they are searching for. Thankfully, a plethora of manufacturers have responded to the demand for furniture pieces that are customisable, multi-purpose, and adaptable.

Furniture suppliers perfect for small homes:

• Murphy Wall-Beds. Murphy Wall-Beds is a U.S. based company that manufactures durable, high-quality fold-away beds. All of their designs are multifunctional and customisable to fit all needs.
• Resources Furniture. Resource Furniture specialises in multipurpose design. From wall beds, to seating, the company sells furniture that maximises space, offers storage solutions, and transforms any space into a functional room.
• Pickawood UK. Pickawood is a UK-based manufacturing company that makes bespoke and dynamic furniture for all spaces. Designers can choose from a preselection of adaptable furniture or order made-to-measure shelving, cabinets, closets, wardrobes, and tables.

Our personal space and what we call home is directly reflected in how we live and feel. Creating a space that is not cluttered and supports mindfulness is key to making a small home work. When designing smaller houses, a holistic and creative approach to design can ensure client satisfaction and wellbeing.

Small homes = opportunity not restriction

A good interior designer possess a love for beauty, a knack for functionality, and an intuition for  client-centric design.

As the housing market shifts towards denser communities and downsized homes, the spirit of adaptability that defines the interior design industry is what will keep design businesses afloat.

Small home dwellers share a common desire for simplicity and beauty in their living spaces. This presents interior designers with the chance to reimagine their approach and offer innovative solutions that maximise functionality without compromising on aesthetics.

By understanding the motivations behind the trend towards smaller homes and embracing creativity and innovation, interior designers can thrive in this evolving market and create beautiful and practical living spaces in even the smallest of homes.