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It's like a terrace house in the UK. My grandma lived in a one room basement with her four siblings and her parents. The room was split in two by a curtain. Ridiculous price for property. You can builder something bigger for less yourself...
i live india and when you consider how thickly populated the urban areas are, trust me it can be done. the price is astounding though. and most kids who grow up in a lower middleclass setup are not that disturbed by that concept. once when i visited slums in delhi, i saw a 100 sq ft shack in which a family lived and there was a common bathroom outside. the crazy thing was the shack had a cooler, a tv and a vcd or dvd player. its weird.
I understand that I'm not in the position to say that was just a number. To some they would buy this just to say they live in the smallest place and that it cost xyz. What I find interesting is if one wanted to they could take a RV set it up on a piece of land for under 5k get any job and be able to invest thousands. Give that strategy 10 years and see what house they could buy. Gladly my life has advanced beyond the single life but if ever I need to I know what to do and how to make it..
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I would think houses that size are workable but you have to be far more organized than I am to live in one.
I would be tempted to put a big dog bowl in the front.
And smiling.