Our houses aren't actually as small as they look. My fiancee lives in the US right now and her house is tiny compared with ours and I live in a modest 3 bedroom semi detached house in the North. Value probably about £120,000?
Her house is worth more, made of toy materials and nowhere near as nicely decorated/equipped. (we have double glazing, central heating etc).
I think UK wins on the house front from my limited experience of US homes. But I benefit from an older build house with much better sound proofing etc than newer builds tend to have.