This thesis proposes "compact living" as a sustainable lifestyle, enabling dwellers to fulfil theirliving requirements while considering ecological concerns. The idea of this project is derivedfrom a phenomenon that urban immigrants move to smaller houses because of the shortage ofaffordable rental house in dense Chinese urban areas, which causes an issue regarding lack ofwell-functioning small housings for urban tenants. In order to develop suitable compact livingsolutions, this scenario-based design project has developed. The compact living requirementsof Chinese urban tenants were studied through design research. Meanwhile, the studies ofexisting small-space solutions aim to come up with solutions by concluding strategies for thespatial-plan. As a result, the designer came up with a concept of "shared co-living community" second-landlord business model with three feasible interior design proposals.Keywords:interior design; sustainable lifestyle; compact living; small space;scenario-based