Maybe you're trying to get a house right now, and feeling discouraged because all everyone seems to talk about is how great mediums and larges are, and--because the artificial scarcity caused by the ward system is objectively terrible--your chances of getting any house, let alone a medium or large, seem slim. Or maybe you're one of the lucky ones and you now own a small, but feel unsatisfied because you "should" own a medium, or the dream: a large.
A lot of players feel frustrated when they "only" get a small. I never have. I'm going to try to explain why, here. It's a long post, so I'm putting a TL/DR at the end. This post isn't trying to tell you you're wrong if you prefer a medium or a large. I'm asking you to consider points that don't often get discussed when housing comes up for conversation, in case you haven't thought of them before. This is intended as a PSA to consider, not a judgment on what you value!
As of this post, there's still opportunities coming up for the Mateus servers to get individual smalls, and in a few months every other DC will get new servers with new individual houses available as well. And the current assumption of the community is that after a few lottery runs, the FC-only wards will be opened up to individual buyers, and by that time all of the remaining houses available will be smalls.
There are way too few houses to meet current demand. Almost everyone hates the house-buying system, it's objectively terrible, always has been, I'm not arguing against that here, there are a billion other threads about that, I'm not trying to add to that here. But SE seems deaf and silent to our complaints, so for now at least we have to live with it. If I can persuade some players that (some of) the smalls are actually better than most/all mediums and larges, maybe you can go for one of those and be perfectly happy!
I think the desire for mediums and larges boils down mostly to two things: space and scarcity. Space: rounding a bit for clarity, mediums have roughly 2 times the floor space of a small, and larges have roughly 8 times. Scarcity: also rounding a bit for clarity, for every 7 smalls available there are 2 mediums and 1 large.
Seems clear, right? Mediums and larges have more space to play with and are more rare, therefore -of course- they're better! Well, maybe not, that's not the whole story.
There are three main other factors to consider: opportunity cost, location, and item density.
Opportunity cost: there are multiple ways to grind gil in this game, and most players think this really boils down to "is the boredom of grinding to an estimated 25 or 60 million total gil worth the pleasure of purchasing the plot, house, and furnishings for a medium or large for you". But that's actually the wrong way to think about it (sorry!), in a subtle but important way. It would cost roughly 5-ish million total gil to purchase and furnish a small house. So the way we should really be thinking about it is "is the boredom of grinding an additional 20 or 55 million gil worth the additional pleasure owning a medium or a large would provide, over owning a small and all the other things that could be purchased with that extra 20 or 55 million gil for you". Only you can answer that for yourself, but my point here is please make sure you're asking the right question!
Location: for me, most of the medium and large houses are poorly located. They have bad views, or they're not facing a potentially good view, or they're a long run from the market board, and so on. There are some exceptions, but even the exceptions are worse (to me) than my favourite smalls. Now, this is even more subjective, some players don't care about the outdoor view or market board access at all, and that's okay! But I do care about the view at least, very much, and you might as well, so please make sure to consider how you feel about that. Wander the wards, look at the plots, and consider how they make you feel. And keep in mind the locations considered by the majority to be best will therefore have that much more competition as well!
Item density: this requires a bit of math (sorry!), but what it boils down to is you can fit fewer items in the same amount of space, the larger the house. Mediums have about 2 times the space of a small and larges about 8, but smalls have an item cap of 200, mediums 300, and larges 400. This roughly means that for every 4 items you could fit in whatever size of space you're considering in a small, you could fit only 3 items in a space of equal size in a medium, and only 1(!) in a large. This is one main reason why so many larges have their basements--and more!--walled off and empty; they've hit their item limit well before they've furnished anywhere near the whole available space. And if there are no walled-off spaces, the furnishings often look spread out and sparse. This is my own personal main reason that I long ago decided I -did not want- a large: if I'm going to effectively shrink a large down to a small by walling off the rest of the space...I'll just buy a small and get the benefits of the lower price and better location while I'm at it! Maybe you feel the same way?
Now, in a perfect housing system, none of these would be issues. We could buy the house we wanted, in the location we wanted, with the view we wanted, and with an item limit that at the least scales equally with size. Unfortunately, we have none of these, and instanced housing isn't coming any time soon. We're stuck with the terrible house purchasing system we have. But maybe you can find a small that you like better than most/all of the mediums available, and therefore give yourself a better chance to win a house you can be genuinely pleased to own.
My ideal plot is a small: Lavender Beds 39. (Not 9, specifically the subdivision 39.) It's a small. If I could only ever own one house on my account, with no way around the restriction like shell FCs or alts on different worlds, I would choose LB39. The waterfall view in the back is -gorgeous- to me; every time I log out I sit her down facing that view so that it's what greets me when I log back in again later. It's pretty much immune to paissa-house eyesores (although I'm lucky I don't have that in my ward anyway), I'm close to the market board and retainer bell, I was able to furnish the entire house so that it feels lived in and not wide open and empty, and I sometimes stop browsing the market board/retainers just so I can watch the absolutely stunning sunsets. It's her forever home, she's never leaving (although if Sharlayan housing is ever released she -might- be tempted! : ) Your favourite small might be different from mine, and that's fine; my point is your favourite plot might actually -be- a small, not a medium or a large.
Whew! If you got all the way to the end of this, then -thank you- for reading all of it! I hope it was worth your time, and that I gave you some good points to consider.
TL/DR: smalls are in some ways better than most mediums and larges. The three main reasons are: the opportunity costs of the additional time and gil required to purchase and furnish a medium or a large; the better locations of many smalls in terms of view and accessibility; and the greater item density per space the smalls offer over mediums and larges. I'm not saying you're wrong if you really do prefer a medium or a large! I just want to offer some points that -just might- persuade you to prefer a small instead.
I love my small, it's my forever home, I'm not moving even if I can; maybe there's a small out there for you that will make you feel the same way!