I lost my tech job and couldn't afford my mortgage. Now I live in a 100-square-foot shed in the yard and rent out my house.

Lauren Patton, a 36-year-old woman, moved from Chicago to Texas in 2022 with the intention of starting anew. She purchased a small bungalow for $400,000, taking out a 30-year mortgage with a monthly payment of approximately $4,000. At the time, she was employed in the tech industry and confident in her financial stability. However, in early 2023, a wave of tech layoffs hit, and she was laid off from her job, receiving only two months of severance.

Unable to afford her mortgage, she began renting out rooms in her main home to cover expenses, including using Airbnb for additional income. Despite these efforts, she still struggled financially and considered returning to a previous accounting job. In 2024, she accepted the lower-paying position and used the income to sustain herself while searching for better employment.

Frustrated by her inability to keep up with mortgage payments, she decided to build a tiny home in her backyard as a temporary solution. With the help of a carpentry kit purchased online, she constructed a 100-square-foot shed, relying on online tutorials and AI assistance for guidance, despite lacking formal training. Since moving into the shed, Patton has largely rented out her original home on Airbnb, earning around $6,500 per month during peak periods.

Although this income covers some of her living expenses, it falls short of fully covering her mortgage, which has since increased by $400 annually due to higher insurance costs. Despite the challenges of living in a small space, Patton has adapted and found ways to make the shed functional, including using a dehumidifier to combat high humidity and learning to manage her limited resources.