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New construction means low maintenance, perfect for your typical busy working parents. Also means smaller yards, smaller trees, all with less maintenance. McMansions are usually in good school districts, with reasonable taxes and decent services. Also, they tend to attract families with lots of young kids, a big deal if you have kids of your own. And open floorplans are generally preferred over the closed-off layouts, esp. with kids. Attached garages are a big deal with little kids, especially in inclement weather (hauling car seats and the like in January is no joke).
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From a sunbelt perspective, you get those same practical benefit from non-McMansion new build suburban homes in most places. Attached garage, modern floor plans, etc. Lots of homes being built where I live that are no more than 1100-1200 square feet and priced reasonably but you get everything you mentioned above.
The typical American family these days probably also lives beyond its' means and overspends on "toys". A lot of large suburban homes are just straight up bloated IMO.
Also, I have this pet theory that technology makes massive living spaces obsolete. You need less physical space for entertainment and books and seats for TV screen viewing when each household member likely has a personal device of some kind. Also with social media people may go to other's houses less so the need to have space to show off is lessened.
That said I've also realized by visiting people's homes that houses from 1950's and 1960's can be kind of crappy in certain respects. Maintenance, they can be musty, dark, too many random stairs, dungeon-like bathrooms and kitchens, etc. They always have that funky bad old house smell, my best guess is they treated wood with something back in the day and now its leaching out.