SLIDESHOW: An inside look at the Derby City Tiny House

LOUISVILLE, Ky. (WDRB) -- In May, WDRB took you to Louisville's very first permanent tiny house, which had just broken ground. Five months later, we take you inside now that the house is finished.

"I'm excited for the tiny house community, I'm excited for Smoketown and I'm exited that it's done," said Emma Hutchens, who built the house.

With a final price tag of $65,000, the house measures just 448 square feet which is a fifth of the size of an average American home.

Creative solutions are key when living in a hobbit-sized habitat. The living room, complete with entertainment center and office area, also serves as a bedroom. A large bookshelf hides a Murphy bed.

"In a matter of two or three different moves this becomes a queen-sized bed that pulls out, you sleep on and then put it away," said Hutchens.

But sacrificing space, isn't about sacrificing comfort.

"The point is not to live without what you need, it's to live with just what you need," said Hutchens.

The kitchen is just off the main living space. It includes a full-size refrigerator, but is missing a few standard appliances.

"There's no cook-top and so what we've decided to do is get creative and determine how you can use the space without having a cook-top, but then also be able to add a cook-top when we need it. And so we actually have four individual burners," said Hutchens.

Something that looks like a piece of art hanging on the wall is actually the HVAC system.

"It heats and cools the entire space," said Hutchens.

Hutchens' favorite room in the house is the bathroom, a controversial decision since she decided to include full-size amenities.

"Full-size tub, full-size walk in shower, so no compromise on the bathroom," said Hutchens.

While the small space is eco-friendly, it's also budget friendly.

"If you're not interested in a 30-year mortgage or signing your life away to that and making payments for 30 years plus interest, this is a really great way to have a standalone home in an affordable way," said Hutchens.

As construction comes to an end, interest in the tiny house movement grows. Hutchens hopes that means the spread of small living to other areas of the city.

"You could modify these same plans and put this same design in Portland or Germantown or in the east end," said Hutchens. "I think it's really affordable for most families."

The tiny house will eventually be on Airbnb for others to rent and try out. Hutchens hopes that will give others a taste of living tiny.