The above quote has become a part of our culture in many manifestations and is especially prevalent in building houses among those people who have reached the higher levels of economic income.
Usually it is not that they have a large family and need more space or continually have large numbers of over night guests or entertain large groups of people.
No.
It is most often to one-up themselves by a “My house is bigger than your house.” position which implies that because it is bigger it is there fore better.
Often in a subconscious or indirect way they are saying that they have more status and money than you which means that in a way they are better than you. Bigger houses become status symbols and it is important for them to show the world such.
And some times it is just to compete. Or show off. Or get attention. Or to be snobbish.
The merit of a house is for people to live in it. Some people like a lot of space in which to live which is a valid life style choice.
The problem in bigger is better in building a house is one of quality vs quantity. This problem becomes very evident in all areas of the design of a house.
When one gets to the stage of building a house, be realistic, logical, and intelligent. Are all of the rooms built really going to used and lived in? Is there a valid living in and use reason for all spaces? Are two people living in a house really going to need and use five bathrooms?
Design the space you want to live in and let the other stuff go. Instead, use that money to raise the quality level of your home. Which would you prefer to choose: two hundred and fifty fast food burgers or one complete excellent gourmet meal? Or thirty polyester shirts or one made of pure silk?
Which is more important to you? Quantity or quality?
Bigger houses make a statement. What does that statement say?
Get the point?
Food for thought.