It depends on where you live and what your priorities are. I grew up in an 1,150 square foot house in the DC suburbs. My parents had two kids. The house is now worth about $390k, according to Zillow. For that much money I can buy a 1,300 square foot condo in Lincoln Park, Chicago. No back yard, except for the 1,200 acre park next door with zoo, duck pond, flower conservatory, etc. Good public school within walking distance (how many dads can walk their kids to school every morning?) The central business district is a 10 minute walk + 12 minute subway ride from the school.
I agree that not everyone has options like that, but I think people make it harder on themselves than they need to. A lot of people have kids and decide they couldn't possibly raise their kids anywhere except a far-out suburb with 1 acre for the dogs to run around in. They spend just as much money for a house as they would in the city, except they get 1,000 extra square feet they use to store a lot of junk. Then they complain about their commute and all the traffic. They do it because well their parents did it and oh cities are so dangerous, forgetting that teenage driving is a much bigger danger to a middle-class kid than city crime. There is a lot of inertia built-into peoples' choices in this matter, IMHO.
I agree that not everyone has options like that, but I think people make it harder on themselves than they need to. A lot of people have kids and decide they couldn't possibly raise their kids anywhere except a far-out suburb with 1 acre for the dogs to run around in. They spend just as much money for a house as they would in the city, except they get 1,000 extra square feet they use to store a lot of junk. Then they complain about their commute and all the traffic. They do it because well their parents did it and oh cities are so dangerous, forgetting that teenage driving is a much bigger danger to a middle-class kid than city crime. There is a lot of inertia built-into peoples' choices in this matter, IMHO.