There is an optimal number of square feet for a home for a given family. If the place is too small, it can be smothering. But over the last 30 years, the size of homes in the U.S. has grown enormously (while the size of an average family is shrinking). It seems that homes might be getting larger than needed and that might take away from family cohesiveness.
This also applies to the workplace. A great office is one where you don’t feel over-crowded but, at the same time, proximity breeds communication.