The new Worcester homes just a few metres wide
What is thought to be the UK's first community of micro-homes is set to be built next year following planning approval.
Each of the 16 homes, known as iKozie, are single-person properties and will go up in Worcester in a £1m project.
Five are to be used to accommodate people on Worcester City Council's housing waiting list.
The first ever unit was created in 2017 to tackle homelessness and was the brainchild of a charity.
Each home will be 17.25 sq metres and feature a bedroom, shower room, living area and kitchen, said to be inspired by yacht interiors.
The 12 not for local authority use will be privately rented.
Developers believe it could be a template and inspiration for solving housing provision shortfalls.
Kieran O'Donnell, iKozie director and a trustee of charity The Homeless Foundation, which was behind the original unit, said the council "was to be congratulated for its vision in supporting this innovative housing scheme".
James Stanley, the chairman of the authority's communities committee, said: "This is a much-needed and innovative housing solution, which will help more people in the city to live independently while also benefitting from being part of a wider community."
The process of preparing the brownfield site, near Cecil Road, is due to begin in spring 2019, with residents expected to be housed by the autumn.