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A small house has more living space than my two bedroom apartment.....
That must be one tiny 2 bdr apartment then. Small houses are usually about the same size as 1-2 bedroom apartments (and probably don't need to mention the tiny house movement where they're even smaller). The main difference is the dwelling is detached from other homes so you get a bit of yard.

Somewhat irrelevant to the discussion though since housing in a game isn't for the purpose of "living space". It's a primarily creative and/or social outlet since we don't truly live in them with our characters (unless we're playing a game like the Sims).

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I have an apartment in game. It is FAR too small for me to do the things I wanted to do. Even with glitched lofts. This is why I am dead set on trying for a medium. I know full well I will probably not get one but I will keep trying as long as there are medium plots to be had.
Which is the main problem. Smalls work well for some creative designs but they work poorly for most.

It would be really nice to learn why SE is having such difficulties providing size options for apartments. It's something they said they were looking into doing back in Stormblood. I'm not referring to the ability to upgrade an apartment after purchase. The technical limitations preventing that I can more or less understand. I'm talking about a player being able to walk up to the Apartment Caretaker, say I want to purchase an apartment, have the caretaker ask "what size"?, player picks tiny (current) or small or medium or large (equivalent to house interiors) and they purchase that size. Many players would be fine foregoing a house if they could get a house sized interior, especially when there would be no risk of demoltion.