Saying you will buy a house even though it is a little small is an example of albeit.
Origin of albeitMiddle English al be it, al(though) it be
(plural albeit, rarely and debatably albethey)
- although, despite being
- He has a very good idea, albeit a strange one.
Unlike although, albeit cannot also introduce a subordinate clause. Either can introduce a noun phrase, adjectival phrase, or adverbial phrase.