Charles is very good at making good use of small spaces. Our house had 3 bedrooms and 2 baths when we bought it, and without expanding the footprint at all, it now has 5 bedrooms and 4.5 baths (well, technically, 4 bedrooms, because we co-opted one bedroom into an office, but that can be undone before sale if necessary). This was possible because Charles built an apartment - the pool house - out of part of the garage (a three-car-sized structure, which was a two car garage and covered patio, now enclosed under the roof); finished the unfinished partial basement by dividing it into two rooms - a good sized bedroom and full bath, and the exercise room which is not a legal bedroom because it has no window; and he divided the silly overly-large main floor bath into a more reasonable sized one plus a powder room.
When we moved to San Jose in 1999, we rented this house, and then a year later, when the lease was up, we bought it. When we planned the move, it was supposed to be just Charles and me, and my two kids. But then his older daughter came out for a visit and decided to stay. And then a few months later, my father moved in with us - we needed more rooms! And later, his younger daughter moved out here and moved in with us too.
But - as I told him while he was building it, and as people came and went - if you build it, they will come back. And they have. At the moment it is just the two of us - but - I'm willing to bet that by Xmas, we will have more roommates again.
So, I'm in favor of living on a commune with a bunch of you, in cottages with only one bedroom, a sleeper sofa in the living room, and a communal guest house for TEMPORARY visitors.