So, what are we to make of the “no room at the inn” and the manger portion then? Well, he goes on to describe the common living quarters at the time, which was common place since the time of David through even the twentieth century time frame. Most common folk had small living quarters that consisted of mainly three sections in a house. The main room, the family room, was the large area where all daily life living took place, from eating to sleeping. There was usually a second room attached in the back, or sometimes on the roof, which was considered basically a guest room.
The family room portion was most often a few steps higher, off of ground level. As you entered into a home, on ground level, you had a small pinned off area, like a modern day “foyer” we’d have today, and then you would step up a few steps into the actual living area. That entrance was foyer area was where common folk brought in and stored their few family animals at night for warmth and protection. In the morning, they were taken outside and tied up in a courtyard area of the property, and that nightly stable area was cleaned for daily use.
At the edge of the living room area, within reach of the stable area, were elongated circular pocket style recesses in the floor where food for the animals could be stored and easily reached by them at night. These areas were referred to as mangers. So, if Joseph and Mary were staying in the house of someone that took them in, and Jesus was born in the family room and laid to rest in this recessed manger area, that would perfectly match the cultural scenario of the living quarters.
When it comes to the idea of the “inn” the original language gives us much insight on it’s own, but the cultural understanding makes it even more clear. Most understand this verse in Luke to be referring to a common hotel type place that had the no vacancy sign lit when Joseph arrived. However, the Greek word used here does not refer to a public lodging place. A public lodging facility, a lodging place for strangers, was a pandocheion (see Luke 10:34). The word used here in Luke 2:7 is the Greek word kataluma, which more properly means the guest chamber (and is translated as such in the Young’s Literal translation). We see this same word being used exactly as that in Mark 14:14 – and wherever he enters, say to the master of the house, ‘The Teacher says, Where is my guest room, where I may eat the Passover with my disciples?’ (see also Luke 22:11).
This guest room was, as mentioned before, the second major room of a common dwelling. So, in this case, if the family that took Joseph and Mary in, already had additional guests in the guests room, then we find Mary and Joseph sharing the front family room with their hosts, and therefore, when Jesus was born, he was laid in the manger portion of that family room, because the guest room was already taken.
There is so much more detail and historical as well as biblical backing for this explanation in his book, but this in essence is the overview of what would have been culturally understood at the time of Luke’s writing. All of this to say that Jesus wasn’t necessarily born in a barn, out in the cold, rejected by all the local living places, but was rather, born in the family room of a family who already had additional guests in the guest room.