The identity of the κατάλυμα in Luke 2.7 has been debated among Western scholars for over five hundred years. Proposals have ranged from an inn to a guest room. This article argues that the term κατάλυμα has a generic sense of ‘place to stay’ and that the final clause of Luke 2.7 should be rendered ‘because they had no space in their place to stay’. Moreover, three clues in the context—Joseph's compliance with the census order, the betrothal of Mary, and the manger—suggest that the accommodations presupposed by Luke are a marital chamber too small for giving birth.