If there is a market for it, I don't have a problem. Not everybody needs a lot of space. Maybe you could rent your garage out to a family to live in

I know somebody in Montreal who told me about this website:
http://www.tumbleweedhouses.com/ a couple of years ago. He was thinking about building a couple of these little houses in his garden and renting them out to students. However, he ended up abandoning the idea because of legal issues.