I lived in a 280 sq. ft. studio cottage for 10 years, in a neighborhood I wanted to live in, as opposed to a larger house in a boring area. As a college professor, perhaps I “should” have been living in a bigger house, but my place was really just fine for me (I like to work in coffee shops and there are plenty in the neighborhood). It’s been great not to be house-poor.
I’m still in the “same” place, except I remodeled it 3 years ago to a palatial 600 sq. ft. It boggles my mind a bit to think that the average US home is 2,392 sq. ft. Why would a normal sized family need that much space?