It's insane. My current 3 bed house where I live with my wife and 2 kids is 900sqft, and we're not exactly short on space. The idea that 1400 would be "a bit cramped for raising a family" just doesn't compute - unless your family has 7 kids or something?
You're right in an absolute sense, but trust me its easy to get used to a much larger space than that. And I can attest that in my world people don't stop aspiring for larger spaces until the space per person is much higher than what you've quoted.
