Hm, this is a tough one. While it is difficult to find information on what state has the most consistently small homes, I was able to find a video of one very small home in Olympia, WA. One woman wishing to simplify her life now lives in a home which is a total of 84 square feet. It is quite remarkable, she built the home herself and it is smaller than a parking spot if you can imagine that. Take a look at the video if you have the time.
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