I think a big reason people want larger houses and more space is the fact that the human race is packed like sardines and it's getting worse all the time and harder to find that space.
Honestly I think it has more to do with the "keeping up with the Jones" mentality in America. There is the perpetual drive to have more stuff thus we need more space for our stuff. In about 60 years the average home size in America has gone from about 1,200 sq ft to 2,600 sq ft at the same time that the average family size has shrunk. One article I just read about housing size claimed that the US is surpassed in average housing size only by Australia and Canada follows in a close third.
The interesting thing about the minimalist lifestyle is that it goes completely against the American norm. Those persons who have turned to the minimalist lifestyle do so sometimes out of being eco-conscious but many of them are just tired of the rat race. One of the luxuries of the minimalist lifestyle is having more disposable income.
Personally I'd prefer a 500 sq ft home on land over a 2,500 sq ft home on a postage stamp.


