Being an expert in this area….I can certainly say that organization and creativity must play the larger role when inventing space for under 1000 sq. ft.  My husband and I moved from a large home with multi garages and storage buildings to 930 sq.ft. and a small metal shed for storage.  Most of the items we had (I) collected over the years needed to be examined, dissected, and set into take or not to take rows and rows….It was very difficult making the selections that would fit the measured and measured again space that we were filling up very quickly.  It became reality when you are faced with items that you love, love better, and must have won the gamut.  After living in the condo for about 4 years now I am realizing we downsized  just a bit too much but it has been liberating.  The one thing I can advise in downsizing is be sure to decide what it is that you love to do in your home and downsize accordingly.  We love to entertain so our living space needs to be bigger and we always have company coming to the beach for the summer and family visiting on the holidays….we should have picked a place with a guest area separate from my office space.  Now my husband and I in searching for our new adventure place will be sure to get that extra living and entertaining area as well as the additional room for guest and oh yes I forgot to mention A GARAGE.