It's my impression that it gets harder and harder to create a place called home for the average person, as wages go down, available jobs are more competitively sought after (especially the ones where you feel like a human doing humane things from day to day), and real estate & rent around urban centers goes up.
Count your blessings if your field of work is amenable to being done remotely, and start building out the skills, habits, and resources needed that go along with it asap.
That place was home in a deep and meaningful sense. Do you know what I realised when I drove home on a weekend to a new house with no history, no lore, no memories? Home is where mum is.
Of course I also have a home in London which is rented and changes all the time and that, too, is home. I don't need to own a place for it to be home. I don't have to be there or have been there for years. I just have to go home and feel good about the space which is mine and filled with my people (and my things).
I guess I just disagree with the premise that there is a need for what you describe. It's something people are taught they need in some cultures.
But short of living in a true "tiny home" (< 400 sq ft), many people today (myself included) are "right-sizing": choosing to live in smaller than average spaces and using smarter space utilization, usually in order to reap some other benefit, whether that is proximity to amenities, work, and transit systems, lowering utility costs, etc.
It probably helps that having a huge house is weakening (though clearly not gone) as a symbol of social status, especially in crowded coastal urban areas.
The real question is was the American dream really open to you? Was this life choice made easier because what was the american dream has been so diluted as to make it unpalatable?
Is the current craze in tiny homes because people really like tiny home or because it is the only realistic option for a lot of the enthusiasts. For some people the former is true. Other are at least in part rationalizing their belief ex post facto.