Lauren Patton moved out of her home and into a tiny home in her backyard. Courtesy of Lauren Patton

This as-told-to essay is based on a conversation with Lauren Patton, 36, who built a tiny home in her Texas backyard. The conversation has been edited for length and clarity.

After a couple of years of living in Chicago, I decided to move back to Texas and get a fresh start. This was in 2022, when the real estate market was booming, and homes in Central Texas were getting bought up quickly.

I found a real estate agent on Instagram, and she helped me buy a small bungalow — two bedrooms and about 1,000 square feet — for about $400,000. I was buying alone; it was just me and my dog.

I had made a very small down payment on my home and taken out a 30-year mortgage. My monthly payment was about $4,000, which was a lot at first, but I thought it was affordable given my well-paying job.

At the time, I was working in tech and doing really well.…