I never had an Xbox and probably am not the target audience, but I can definitely see the value proposition.
Seems great for casual gaming with a very low barrier of entry. Who knows how long game pass retains the value it currently offers, but until then there is nothing wrong with enjoying it.
Personally Xbox never was for me because PC is just very different (I e.g. wouldn’t want to play strategy games on a console) and if I were to get an additional console it would likely be a PlayStation since the exclusives usually seem stronger.
It is not just more people for the same number of houses, but importantly also changed preferences.
If more people want to live in the city, then empty houses in the countryside don’t help.
I’d have to look it up, but I also think the amount of living space used per person has increased. Especially for older people that keep on living in the same house (which they might own), even after the children have left.