I’ve lived in both types of homes and can say I’m happier in a smaller home with a larger lot. We just moved back to SoCal from North Carolina and there we had a very nice 3000sqft home (which is average to small for where we were) and here we have a 1800 sqft old house and I am happier. The kids get to spend more time outside here where as in NC it was either to hot or to cold to be outside all the time. Here since we got an older smaller home our lot is large 1/3 acre and has room for pool and grass area for kids to run. Being the one who cleans and home I’m also happier to clean a smaller space, also the cost to cool the place (even our small space here) is about triple the cost of NC. I honestly don’t understand the need or desire to have a larger home unless you live in an area where you can’t spend much time outside, but that’s just me. we have 2 kids boy and girl so they each have their own room and we have a separate office, I don’t think our house feels cramped at all. The previous owners were the original owners from the 50s and they said there were 5 kids and 2 parents that lived in our 4 bd home, now that might feel a little cramped to me.