Homebuilder Andy Katz decided that if big houses weren't selling in the current real estate market he would turn to small homes.
Really small homes.
As in playhouses.
"I've had to think outside the box," Katz said of his big idea to go small.
His first custom playhouse, which he finished in Scottsdale a few weeks ago, is a 225-square-foot replica of a larger home.
It has everything and the kitchen sink, with running water.
The miniature home has a doorbell, porch light, interior lights, hardwood floors and it is cooled by a window air-conditioner.
"Kids can play in it year-round," he said.
Katz started Children's Customs after building a two-story 160-foot playhouse for his daughter.
He built the second one for Corina Lange and her husband, RobThey wanted the elfin home built for their first child, a son, who is due in June.
Lange's 4-year-old niece and neighbor children have been the first occupants of the playhouse.
The place turned out far more elaborate than she expected, said Lange, who can stand up in the play space if she ducks.
"I like that it matches our house," she said. "It's almost like a guest casita."
A guest casita for very small guests.
Katz, who has worked in land development and construction for Phoenix-based Courtland Homes, said it took about five weeks to build the playhouse.
He plans to start another one in DC Ranch within a month.
Prices for the playhouses can vary widely, depending on what buyers want to include and how closely they want it to match their home, Katz said.
It can be anywhere from a few thousand dollars to ten times that.
Playhouse options range from plastic Little Tikes models for $279 on up to $20,000 to $30,000 kit houses that can be ordered online.
A Wall Street Journal story from 2006 reported on "Mini-Me McMansions" that cost as much as $240,000.
Katz of Children's Customs said that spending $40,000 to $50,000 for a playhouse is not out of reach of someone who is spending millions on their home.
And that segment of the luxury home market seems to be unaffected by the economic downturn, he said.
When Katz built his first playhouse for his daughter, he encountered some resistance from his homeowners association because it was taller than his side-yard fence. But the association board allowed the playhouse after he submitted detailed drawings of it.
Katz hopes to interest a homebuilder in having a playhouse at a model home and offering them as an option or part of a kids package of home features.
Children's Customs playhouses are shown on its Web site at www.childrenscustoms.com.
Katz said he can also build air-conditioned doghouses for people who want to pamper their pets or just to keep the animals comfortable in the summer.