They would probably see decreases in some sources of stress, but they'd get smaller refrigerators and less comfortable climate control, they might have less living space, and be more reliant on public transit. They'd have a less powerful military force supporting them (you may laugh, but they clearly prioritize that).
Interestingly, as an American living in the "cheap" part of the country, these feel like things that I pay a premium for (minus the excellent climate control).
Small houses are more expensive than medium/big houses generally speaking (in a price per square foot way), and I pay a rather extraordinary amount of property and town and school taxes to be in area where I don't need to rely on a car for absolutely everything. I do need good heat and AC a few times a year and I feel like there are very few places in the US that don't? But at our coldest we are in the negatives for weeks at a time, and in the summer we have weeks where we hit a hundred w/ v. high humidity.
But to be fair, until I lived in my own house I spent over a decade not having AC and I didn't die - but I did live in some gross moldy apartments that probably were not legally habitable:).
And yeah - approximately half the county does value a ginormous military, and a fair few question whether it needs be SO ginormous. It's a big country /shrug.
To Markbrynn's point, a huge chunk of Americans (and I would guess a majority under the age of 45) would trade our high incomes for stability. If you make a good salary (say 80k) but more than half of that goes towards crappy housing, student loans, taxes and insurance costs (not to mention actual medical costs), and you still have trouble affording other essentials, and you can never afford to have kids or take more than a couple of days of vacation time . . .
If someone offered me half my pay and said I had to live in an 800 square foot house, but instead I got a 40 hour work week, sick days and medical leave when I had my children, and cheaper childcare, and feeling like I could afford to go to the doctor when something was wrong? Man, at this point in my life I'd take that deal in a heartbeat. Maybe I am an outlier, but I'm guessing there are more and more of us.