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I would put it down mainly to necessity – people who can’t afford normal sized houses in the areas they want to live.
Yes there are people who seek out small houses (including this person), but I imagine they’re fairly few and far between. Largely it’s people who want to live in neighbourhood x and maybe like the idea of owning a home.
When I lived in the UK I mainly lived in apartments about the size of my current living room in Florida. Even friends of mine who own homes have places that are smaller. It’s just… the way it is there. By contrast in Ireland (where I’m from) people tend to go for larger places.
By the way:
> It always strikes me that there’s no place for tools. No place for camping gear, or bikes, or a lawn mower, or garbage cans, or a furnace, or pretty much everything that people need to store for the next time you need to use it.
All that can go in a shed outside. Who keeps their lawnmower inside the house?