Micro cottages are the new trend in cost-saving construction and expansions. Country Living Magazine is displaying three of them downtown as part of its House of the Year installation. NY1's Jill Urban filed the following report.

It’s not every day that you see a house in the middle of Downtown Manhattan but right now, near the World Financial Center, you’ll find three of them.

The houses are downtown as part of Country Living Magazine’s House of the Year installation.

The project, called "Room to Spare," showcases micro cottages, which are the latest trend in cost saving construction and expansions. This obviously doesn’t apply to apartment dwellers, but for those with a house and a little extra room in a backyard, this could be an option if you are in need of more space.

"This year, for our House of the Year, Country Living decided instead of building one big home, to build three separate micro cottages," said Sarah Gray Miller, the editor-in-chief of Country Living. "It's all about reflecting the trend towards living in smaller spaces, especially with the housing market being in the shape that it’s in. People aren’t moving around as much. This is a way to get extra square footage without living through the hassle of a renovation."

These stand-alone modular homes have become a huge trend around the country. In most cases, they are built off site at a factory and delivered right to your yard for around $70,000 and up. The Country Living cottages offer examples of the various ways people can use this additional space.

"A micro cottage is a little addition to your house, except it is not attached to your house," Miller said. "It’s almost like getting a separate small home. It makes a great outdoor kitchen, a great guest room or a great home office."

Since each cottage is just over 200 square feet, the installation also offers New Yorkers a chance to get some design ideas for small spaces.

The three homes were designed with the help of celebrity stylists and experts. New Yorkers are welcome to view the homes. If they want, they can buy one after the event.

The Country Living House of the Year presentation runs through Wednesday and is open to the public free of charge.