Measuring just five feet at its widest point, the ultra-thin home was unveiled in the Polish capital of Warsaw on Sunday.
Squeezed into an alleyway between a pre-World War II house and a modern apartment block, the unusual property was originally due to be installed as an art installation.
The ground floor contains a kitchen, toilet, shower and eating area, while tenants can access the upstairs bedroom via a metal ladder.
Polish architect Jakub Szczesny said the claustrophobic living quarters has all the basics a tenant could need.
'It contains all necessary amenities such as a micro-kitchen, mini-bathroom, sleeping cubicle and tiny work area, all accessible via ladders,' he said.
'I think plenty of light is most important in order to eliminate the fear of the small space.'
He added: 'Research shows we are approaching a social disaster because too little living space is built.
'You don't need that much space to live in, so it is worth considering building smaller scaled, cheaper housing.'
Israeli writer Etgar Keret will be the first person to live in the property, which has been named Keret House in his honour.
Many members of Keret's family died in the Holocaust under Nazi Germany's occupation of Poland, with the house built at the point where one the largest Jewish ghettos in occupied Europe was created.