They had the land and the plan ready for a 3,000-square-foot retirement home.

But sticker shock and a sour economy spurred Lee and Donna McCollough to downsize their dream into a 336-square-foot ``country cabin'' near Schulenburg in South Texas.

``It was mostly an economic move. But it's serving our lifestyle very well,'' said Lee McCollough.

Built from vintage salvage materials by Tiny Texas Houses of Luling, the ``turnkey package'' cost $70,000, McCollough said. ``It's great,'' said the 62-year-old retired electrical technician. ``People are impressed with the construction and coziness of it. It's built like an Igloo ice chest.''

Tiny home proponents call it ``super downsizing,'' but that's just the extreme edge of a growing movement away from suburban castles and into ``right-sized'' homes that require less energy, upkeep and money, experts say.

``The era of the `McMansion' could well be over as home sizes have been trending downward recently, with a significantly higher number of architects reporting demand for smaller homes this year,'' Kermit Baker, chief economist for the American Institute of Architects, said in a news release.

In a June survey by the National Association of Home Builders, 59 percent of respondents said they are building smaller homes, said Stephen Melman, the group's director of economic services.

As the economy sank in 2008, new homes started shrinking, Melman said. Census data showed the average new home declined from 2,600 square feet in the second quarter of 2008 to 2,373 square feet in the third quarter, he said.

``This isn't the worst thing in the world,'' Melman said. ``People are buying the home they need. . . . Energy costs are up and people are interested in cutting costs.''

Several companies are addressing those needs.

Jay Shafer, who has lived in a 100-square-foot home since 1999, has become a Pied Piper of the micro movement.

Four years ago, the 44-year-old former art teacher and health food store clerk started Tumbleweed Tiny House Co. in Graton, Calif., which sells plans for small homes and builds tiny portable ones on wheels. He's written The Small House Book and teaches courses on building small.

Interest in his homes is driven in equal measure by the economy and the environment, Shafer said. His home plans start at $995 and the houses on wheels run from $35,000 to $60,000.

For such Spartan spaces, those prices sound steep but Shafer says building small is akin to ``tailoring a suit.''

TINY TEXAS

In 2006, Brad Kittel started his company, Tiny Texas Houses, to use materials from his salvage business. Using wood from old homes and barns, he built a 160-square-foot cottage to make a point.

``I wanted people to understand that salvage antiques aren't just for decoration. Once I built the first one, everybody liked it. It got a better response than I thought it would,'' said Kittel, 53.

``I figured a 12-by-20-foot would be the biggest when I started, and now we are all the way up to a 12-by-33,'' he said. ``That might be too big.''

His homes drew initial interest as artists studios and weekend retreats.

Now, the economy has people viewing them as full-time dwellings. Kittel has built about 30 of the petite abodes, and six more are in the works. They range in price from $38,000 to $90,000.

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