The Tiny Home trend and the "Van Life" trend are slightly unsettling to me - I wonder which forces are at play who intend to convince us that lowering our standards of living is cool? No judgement from me if you do choose to do these things, though. I do see the appeal. Maybe there is no conspiracy, maybe it is a coping mechanism. Edited "deeply" to "slightly" upon further reflection.
1. There is nothing wrong with living small, but there is a point when every square meter/feet makes a lot of difference.
2. We really should be getting better standards of living over time as manufacturing gets easier. Most people should be having even modest vacation homes bigger than this.
3. Even if you don't believe in these things, it is to some extent at least an ideal. Maybe especially in the US giving up this ideal is a significant decrease in prosperity.
Ultimately one has to ask themselves "for what?". I can in many ways see the appeal and I am interested in things like house construction. But ultimately it is also a result of the absurd situation where we aren't producing new opportunities anymore. And you can't really compensate for the changes in the bigger picture.