In the UK in a victorian terrace, and our front room is perhaps on the small side at about 3x4m. I'd guess somewhere between that and 4x5m is about average. For us 32inch still can feel imposing. And that size screen seems to be being phased out.
If so, you're right; that's pretty small. Is it just a matter of acclimation?
Also, can you clarify what you mean that you're lucky to have a house? I wasn't aware of a major homeless problem in Europe.
Have a random right move link of what I think as typical Victorian worker's terrace: https://www.rightmove.co.uk/property-for-sale/property-62228...
The door by the yellow chair is a tiny porch with front door beyond. No idea how it compares with OP's.
Homes in the UK can be expensive, so there's a large rental market.
On top of that many people are vulnerably housed - living in emergency temporary accommodation (which may be for many months) or on friend's sofas.
The introduction of the benefit "Universal Credit" has increased homelessness and people who are vulnerably housed. In the UK a landlord can apply for eviction if the tenant hasn't paid for two months. (This is for shorthold tenancy agreements where tenants have most rights - other tenancies have less protection.) There is a minimum wait of 5 weeks before Universal Credit claimants get paid, which pushes some people very close to this limit. The bizarre sanctions regime tips many people over that limit.
Detailed information can be found here:https://www.crisis.org.uk/media/238700/homelessness_monitor_...
How do you cope in a car?
But joking aside, I'm surrounded by glass on all sides in a car. That makes a great deal of difference. I probably wouldn't feel confined in a room that size if I had an entire wall of glass.