Small living doesn't have to mean small furniture. Sometimes, a "room within a room" can give your small space distinct areas. We think this sofa does just that. It's the Alcove sofa by Ronan and Erwan Bouroullec for Vitra.
The back and sides are high (34"), meaning the sofa creates an intimate little alcove. The sides can fold down, providing a horizontal surface adjacent to the seating. This versatility also makes this a nice piece for a small home. And we love the red color: this could make a room all by itself.