The bigger home is inherently cheaper, though. (At least, in the US).
A ~1800sqft new home (the average new low-end build out here in the midwest) takes way less resources and labour to construct than that old 1000sqft brick home did. Houses today are made out of the cheapest plastic and twigs (many don't even have a single piece of real wood in them anymore). Houses back then used bricks and real-wood timber (expensive to purchase, expensive to move, expensive to lay, etc). Your old brick house probably had expensive copper pipes, new builds use plastic PEX straws so cheap they're practically disposable, and so on.
Homes built today are made using far less labour, less materials, and far cheaper materials than before. If land and asset valuations had stayed consistent, homes today would be drastically cheaper than before. Yes, homes are "bigger", but those extra open empty spaces cost practically nothing extra, the fixed costs are mostly fixed and the variable costs are trivial.
I can guarantee you there are effectively zero millennials living with their parents or with roommates in a small apartment who would turn down the chance to own an affordable small home.
Or, more neutrally, our standards and expectations have changed from the 1960s. If you want the 2020 life on the kind of job that got you the 1960 life, you're in for a disappointment.
I live in 500 square feet, don’t go anywhere(like to a bar) and don’t have a car. I don’t have kids.
Well, the single-family detached suburban California home I bought as new (not complete when we signed) construction in 2006 was 997 sq. ft. on 0.1 acres, so other than “brick” that was certainly possible to find new not that long ago.
You have to remember, those new homes are only bought up by about 1% of the population. So, to say that 1% can afford much larger homes is not saying much about the other 99%.
Obviously, some of that you can't avoid. No one is making 1000 sq ft brick homes anymore for new homeowners, so you don't have an option of a small, cheap home in many areas. You only have the option of the bigger, more expensive home. But some of it is a personal choice. I think there is something to the argument you're making, but I also think people are underestimating the frugality of people in the past.