I look back at the middle-class neighborhood I grew up in and realize plenty of people lived in small, single-level ramblers. Maybe 1,500 sq ft, 3 bed room 2 bath, kitchen and family room.
They also often had one car. And they drove it forever.
One TV. No cable. No cell-phones, internet, or anything else invented in the past 30 years, of course.
Their vacations were either to see family, camp, or *maybe* stay at a Motel 6.
Eating out was only for celebrations.
Their kids wore hand-me-downs, walked to school, and rode their bikes to little league practice.
It seemed 100% normal and acceptable to everyone. These people didn't feel rich, but they didn't feel poor, either.
I was born in '81, in S.E. Idaho, for reference. I will say that the kind of affordable-neighborhood I recall from the 80's and 90s (in Idaho), doesn't seem to exists in the same way in Utah now. Neighborhoods in Utah seem to divide much more clearly on socio-economic grounds. Places that are affordable seem run-down, crowded, etc. So, to re-iterate, I think you are right. But comparing "now" to "then" is interesting for many, many reasons.