Hana, who works at a software company, "was way more thoughtful the decision," he continues. "My wife is Japanese, and homes have a small footprint in Japan," he says, so she resonated with the home's simple forms and economical spacing. They both loved the structure's shou sugi ban exterior, a Japanese wood charring method that dates back to the 1700s.

A Starter Home to Grow Into 

In addition to creating the Japanese garden, the Elliott's have also added a 440-square-foot detached painting studio. "It has a concrete floor same as the house and is recessed into the hillside," Elliott says. The studio also a green roof and sports recycled tin siding. The studio provides the family, now including a new baby, with some extra space to grow.

An Example for Nashville 

For Nichols, the home "encapsulates a lot of my ethos, with its small footprint and minimalist design with little closet space—which was intentional as I've lived in tiny places where you don't have lots of things. From a design standpoint, a lot about this house resonates with me."

The house is also resonating with local homebuyers. "Nashville doesn't have many examples of sustainable or LEED homes," Nichols says, "In large part, that's because banks still finance real estate based on square footage, bedroom and bathrooms, and location. They don't finance off of energy efficiency and unique design."

Still, he adds, "There's tremendous demand for our houses. Each one has sold within two or three days and for more than the asking price. We strongly believe in proper density and scale. We took some awkward lots like this one, overgrown with invasive species on a hillside, and transformed them into their highest and best use."