Until we managed to move out of town, we lived in a house with less than 1000 square feet of living space (the garage brought it up to almost 1200), and there were routinely 6 of us,and also 4 dogs, 3 cats, 2 birds, a rabbit and a turtle. At times, when a someones friend stayed over or needed a place to stay, we were up to 9 or 10 for a while.
I wouldn't mind living in a tiny house when it's just me...so long as some child is willing to move out here and take the big house. 
The years went by and the kids began to leave home one by one. Sold the big house when there was just us two, down scaled to two bedroom apartments, still too big, the extra bedroom was too tempting for the kids that came home from time to time to stay just a few days----right, some brought their kids with them and stayed for months.
Big mistake, we could not resist the home we bought unfortunately it has 3 bed rooms and a family room. 6 months after buying Hubby's brother moved in with us, then a year later my daughter displaced from her home came to spend a month with her 4 kids. Turned out to be like 6 months actually.
BIL stayed 14 years before moving out. Finally just us two again and Mother decides to clean out her home of family stuff and now two bedroom are full of boxes of stuff I should sell or give away to my children as part of Moms Estate.
We live in essentially 4 rooms, living room, dining room, bedroom and kitchen. We do not need 2 extra bedrooms a guest bathroom a laundry room or a family room.
If I could find a two car garage on 1/4 acre of land I could convert it into a one bedroom home and have space left over. No feelings hurt when turning down anyone from spending but one night on the sofa. Utility bills would be slashed by 3/4, house cleaning cut by hours, a place for everything and every thing kept in its place. No more wandering about wondering where I had or Hubby had put something.
I adore the Japanese style of built ins and sliding walls, Murphy beds and convertible furnishings that can have triple use. Tables with shelves under them that can be used as a coffee table or sat on for a seat, In my home something to put ones feet up on.
Status symbols are no longer the big homes for the empty Nester's, the yard work involved, high taxes and huge utility bills. All that money can now go into luxury items, expensive curtains, bed linens that cost a fortune. Perhaps a couple good pieces of Art for the walls, one pair of $400.00 shoes with matching bag. A maid service to come in once a week to do windows and floors.
Imagination and ingenuity for those living on retirement when every penny counts. A retired couple bought into the old section of our Village a run down single wide trailer. Paid about $12,000 for it, took $15,000 out of their retirement fund and had a child who was in school for design come and rebuild the inside. This 14x50 trailer about 700 SQ feet, was a work of art. Walls were knocked down and all inside doors , glass French, slid into the wall. The outside walls inside were covered in knotty Pine paneling, All the floors covered in a red brick motif Linoleum, one would believe those were really bricks on the floor. No curtains just wood shutters that were of the type that were collapsed against each other.
The kitchen was much like mine, no doors on the cabinets above and the below cabinets had curtains of small red and white check design to match the brick linoleum. Kitchen table was a 4 setter wood pick nick table with attached seats they had sanded down and covered with some kind of plastic to a warm glow. The metal pieces were sanded and painted a copper color.
One of the most comfortable and welcoming homes I have ever been in.
Bathroom , the tub was removed and a big shower in its place.
Bedroom was just that a place to sleep, but IIRC the doors to the built in cabinets had also been removed and wicker baskets held clothing, they did splurge on the big closet by buying a closet organizer that amped up storage space by 25%. Hard to believe they did all this for $15,000.
And the family living on #SS is the only family in her area to have once a week cleaners come in.
Cost $17,000, paid in full. Taxes $900 a year. Lot rent, $400.00 Utilities + cable and phone. $150.00
$625.00 a month to own their own home that frankly I would rather live in then this money hole.