I don't know if there was a specific point at which it happened but it seems like we somehow measure everything in terms of dollars, including our sense of self. We even measure happiness in terms of dollars. And it seems that we have created a system that if you somehow prefer less and a simpler life, you are regarded as some kind of social pariah. Like it is almost Un-American to not spend every cent you have on goods and services.
Zoning laws are crazy in most places. I was having a somewhat lengthy discussion with one of my cousins in Denmark — he actually lived in the US for 3 years — any pointed out that through his lens of perception as a foreigners, zoning in the US seemed exclusively designed to maximize profits rather than to optimize housing people. I can't say us how I disagree with that assessment.
We have since given up on finding a smaller place not for price reasons but for simple availability reasons. There's just nothing going, and on the rare occasions that there is it's usually snapped up by some Private Equity Firm as a knockdown to rebuilt as a luxury property.