For one year of my life when single I lived in a 300 sq ft studio above a garage on Vancouver Island (the year before I met hubby). Cost? $600 per month. Why on earth would I spend so much money to live in such a tiny space? Full ocean view 20 steps from the beach. The studio was above the owners detached garage set on a hill above their house. So while they paid $1,000,000 for the full ocean front property I got the same view for $600/mos. It was so worth it. Frankly, besides my current house it was my favorite living space. At the time I had recently sold everything I owned so could easily fit my few belongings into it. It held: shower/bathroom with door for privacy, mini kitchenette with hot plate and mini fridge, table and 2 chairs, love seat and desk area. I only moved due to relocating back to Alberta when I met hubby.
Check out this small space living at its finest - 12 x 7 ft in Manhattan: