The simple dull reality is that there's a huge shortage of homes because homes were under built for decades and decades due to 1) exclusionary zoning and 2) governments stopping funding any and all below market housing in the 1990s.
The shortage of suitable homes of course hurts families very badly.
Many large homes suitable for families are occupied by retirees that don't want to move and don't have anywhere good to move (because again, we've built little). Zoning prohibits subdivision and redevelopment of the vast majority of the surface areas of cities so creating more housing is difficult.
Families need 1300sqft+. We badly need to rezone the entirety of our cities broadly to allow massive sfh lots to be redeveloped to create multiple 1300sqft+ spaces suitable for families. Rowhouses, Townhouses, and Apartments.