I do believe that to many people buy houses that far surpass their actual needs. I have a retired friend and his wife that built a 4 bedroom, 6 bathroom house on a massive piece of land. It was just the two of them. No kids, no grandchildren. Keeping up with the grounds and the house ended up being a full time job. No thanks.
the tiny house is the other extreme. They make it look like you can live anywhere but you cant. You need power, water and septic. Due to the water and septic needs you will have a hard time living where it is cold. Water freezes in all size homes when the plumbing is exposed.
The one exception that I did see for this Tiny House movement was a lady that always wanted to live in Hawaii. For $40k she had a house built and now lives on a beautiful piece of rented land. Her monthly land/water/septic charge was under $300 a month. So for a minimal investment she is now retired in Hawaii. SIGN ME UP!!