Small Is Beautiful: A Cottage for $32,000

Does the American Dream include a McMansion for every family? Some will settle for a cottage. In Gulfport, Mississippi, the state has designed and produced "Mississippi Cottages," which are skinny, sturdy and small houses in happy pastel colors. They cost an average of $32,000 to build, and actually are both healthy and popular with those who live in them - unlike the horrible FEMA trailers. With foreclosures accelerating, one would think there could be a market for affordable housing. OTOH

The Mississippi Emergency Management Agency has installed more than 2000 of them throughout southern Mississippi and plans to put in 3,500.

But local governments in Mississippi have resisted the cottages. They fear people who get the cottages will simply live in them and not rebuild their houses, said Mack Womack...of MEMA.

"They're too nice," he said. "I've heard this over and over again."

There you go...The Market is not there for affordable housing.