These small homes would be perfect for single people that don't want to rent, in the long run owning a home is cheaper than renting. With renting, the monthly payment never ends, with a house payment, once it's paid off, it's paid off and it's yours. Although I don't recommend house ownership to someone that moves often. Home ownership to me is something you do once you find a place to settle down in and plan to stay there for 30+ years. I've heard of people who moved to a place, stayed there for 30 years, bought a house, then renovated it and made money off the house when it came time to sell, then moved back to their hometowns to retire comfortably.
A house is a place to live yes, but you also have to treat it like an investment if you decide to sell it in the future if your living circumstances change.
If I finish my degree and end up getting a job around here, I may purchase a mobile home to go on the hill where my parent's trailer used to be.
There is a mobile home manufacturer here in Arkansas that can make mobile homes that look like cabins and once they get it set up, if you want a garage, they will send out a crew to build a garage to attach to the mobile home, once all finished it looks more like a small house rather than a mobile home.