Hi,
You could substitute the fabric to a 16 count fabric but you stitch "over one" square and you would get close to the approximate size of doing the pattern "over 2" with the 32 count.
If you go to the "cross stitch fabric" title in the sub-menu to your left, there is a fabric calculator you can use to enter different size stitch count with a pattern,s width and height (110 wide x 127 high for this owl pattern)t with different fabric counts i.e. 16-count, 22-count, etc. and see what size the finished pattern will be. I "play" with my cross stitch patterns when I want to use a different fabric count, make the finished pattern a different size or change the extra amount of extra fabric To add for mounting and framing.
Hope this helps. :) I'm not a employee of ECS but one of the stitchers on this "chat" board that saw your question.