And to answer the original question, a bigger house, along with a bigger mortgage has never been a driving factor towards my happiness. I think that generally people have a baseline of comfort required to keep them happy and every bit above that provides diminishing returns. If you're not comfortable in your house, then yes, an upgrade will probably make you happier. But if you're buying a McMansion just for the sake of having more room, I don't think it will be as big a factor as you might expect. Bigger space to clean, less money to play with every month, more space to fill.
Really, though, each individual will experience different results.
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