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>>/54574/
>>/54576/
Quite a few people find the idea of such buildings as comfy homes. The depicted one seems typically Slavic.
There are many places all around the world where people lived in similar dugouts. Even here the archaeologists found lots of remains of buildings which were half sunk into the ground (compared to the pic in OP, like it had half the depth of that) from the Árpád-era (the first dynasty of Hungarian kings) and they theorize that they were homes, others think they were tied to some kind of work. I'm not sure if all but many had a lower level in one corner, like in the depth of a human calf. They don't really know why, some guesses they sit there...
Slavs also had similar buildings with a fireplace in one corner.
Anyway there are many problems with these. The big plus is insulation, the big minus is waterproofing. It's easy to get a pool in spring in a place like OP. For harsh winter, like in Siberia, it's perfectly fine, for it snows a lot, everything is "dry" due to the -30 and lower.
Smoke issue can be solved with a chimney. But in OP that looks more like an oven for baking bread - those need a closed space that retains heat and not a windpipe like a normal fireplace.
There is a lot to write about these. Even today people plan dugout houses and homes.