We've recently downsized - sold the old place, now living in 700 sq ft. It's an in-law apartment attached to a bigger place (~2000 sq ft) that we're still waiting for our son to move into (when he sells his place) and start paying for. Right now we own the whole thing, but are only living in a bit of it. We're happy with the smaller living, but the bills for the whole thing are a concern.
Your downsize has gone all the way - one step above homeless. I do some volunteer work here with the soup kitchen in New London, and get to meet some of the homeless. Surprisingly, most of them seem happy with their lot - "Yeah, a home would be OK, don't need it". Just a matter of life style - you seem to be adapting to yours. Sorry I missed meeting you during our recent W coast jaunt - guess you were on your Italy thing. Another time?