I’ve never lived in a house with more than 3 bedrooms and only lived in one with more than 1 bath for less than a decade. We’ve lived in our current 3-bed, 1-bath, 950 sq.ft. home for 16 years. The mortgage, taxes, and insurance are easily affordable, cleaning is very manageable, and every room gets used every day. Husband wouldn’t mind a basement for extra storage, but honestly, not having one keeps us from accumulating unnecessary junk (we both have latent packrat tendencies).
My parents are both from 7-kid families. Dad’s family lived in a 3-bed bungalow with one bath (the 5 boys had the bigger upstairs room). Mom’s family was slightly wealthier: their 3-bed bungalow (5 girls in the upstairs room) had an extra half-bath and small extension for a family room. Given those stories, I always felt spoiled for having my own room.