Good point however,
Keep in mind that the 1970's had a couple of energy crises. People were not looking for enormous homes to renovate as heating them was becoming prohibitively expensive. Remember this was the era before high efficient furnaces and Energy Star. It is ironic though that people were beginning to flee the cities and chasing the jobs to the burbs, so they built new houses out there.
It does not make sense when comparing things to today's world, but many were making what were considered rational decisions based upon the time-space continuum. Today? Not so much.
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