Well, that's true but imagine Resident Evil 7, it happens in a large house and it works because it's segmented into different parts and there are monsters and items for each part.
Yeah, but that could easily be justified because it was a family of four living in a house. A husband and wife in a house that size is still unreasonable to me. Regardless, the developer informed me that the size of the house is all part of his hallucination, and apparently this was hinted at in the game. So, the size of the house is, from my understanding, much smaller than what it seems to be in the demo. I picked up that he was having hallucinations but not that the inside of the house was part of it.