I mostly grew up in the city, in a small apartment, but for a while we did live in the Midwest, in a big house. The only problem with apartment living was that we had too much furniture we didn’t need from when we lived in the Midwest.
That's a projection of your subjective preference.
1200 sqft is not enough space for just me, that's my subjective preference. I currently occupy a home by myself with about ~2,500 sqft. I don't utilize all the space regularly. My bills would not go down by much if I reduced that space to, say, 1,500 sqft. Housing where I live is spectacularly affordable. I consider not having to live in a tiny, cramped space to be a quality of life benefit. I enjoy that my kitchen is the size of a small studio in San Francisco or NY, and it costs me perhaps $120 per month as a share of my mortgage.
I occassionally work from home, and I need a seperate office with a door to do that. Also, I just like having some space to get away from the rest of the family for a while.
Like you, it's what I'm used to from when I grew up, so that probably plays a big part in my preference.