Update from OP maybe??
Everyone has there preferences, but mine is certainly to pay more for less space in an area close to work and activities. My last two house purchases have been in older, well established neighborhoods downtown with decent primary schools. The costs have been relatively high, but I have never regretted the price and never lacked for space.
My current home allows we to walk to the light-rail for a 13 minute ride to work. We have restaurants, bars, coffee shops, cleaners, and a grocery store all within a short walk. Even the elementary school is just a few blocks away that my wife could (and likely will) walk the children to.
The reason this housing choice is preferable to me is because of the huge amount of time I gain outside of work. I have coworkers that regularly drive an 1+ hours to live out in the suburbs or mountains...and they complain regularly. If there is even a hint of snow in the air, this seems to consume half there day discussing when they are going to leave to avoid a 2+ hour commute or how treacherous there ride in was. This does not appeal to me at all. I'd much rather be home with my wife or out exercising than getting stressed in a car.
Again, to each their own. I certainly understand the draw of cheaper prices, more land, possibly better schools, etc of being out in suburbia...but in my opinion the drawbacks out-way the benefits. In a perfect world I could live up in Summit county on 30 acres with streams and my own personal mtn biking trails with a teleportation device to get me to work and all the great spots/conveniences of downtown. Until that teleportation device is created, I'm more than happy with vibrance and ease of city living. It is much easier to commute to the mountains on the weekends from my perspective.