Well, its for a pretty standard starting village, I just really have no clue how big medieval village homes were
I'm not sure anyone does, which is probably why you're not getting an answer to your original question. One internet site said 10 feet square for a peasants hovel. "Life in a Medieval Village" gives 10 ft x 20 ft. A google search would probably give you a floorplan for manors, churches, and castles. The stuff that survives is stone, so I think archaeologists/historians hesitate to make definitive statements on little evidence. Then again, since this is a game and not some scholarly thesis, I'd go with 10x20 on average.
AFAICT the core rules always favor "fun-bodering-on-ridiculous" over anything historical or even logical. I'm not sure the two are always mutually exclusive, but research takes effort so implying that they are exclusive is convenient.
It is worth noting what other's have: consider, for areas where you anticipate combat, that it's more fun to have some space to maneuver.
Also, DnD is not Medieval Europe. Medieval Europe (including it's regional differences) is the result of a very specific chain of history, geology, culture, religion, population density, etc. There are plenty of reasons IMO to suspect that differences in materials, cultures, existence of magic, demi-human races, and history would produce whatever results you wanted.