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How small is too small? I think that is in the eye of the beholder and how much junk they have. Dwell Magazine’s article called Wood Works shows a 240 sq. apartment in New York city. There was a time when the bigger your living space the better. I like small warm and cozy places myself - but even saying the number 240 sq. feet sounds small. But after viewing the slideshow in the article - it might be possible (providing In continue to get rid of my junk). Regardless it is a wonderful use of space.
