The lack of affordable 2500sq ft apartments is the big failure. It doesn't cost that much more to build them, and so rent shouldn't be any more than a house payment ($1500/month!). If that doesn't exist it is because zoning won't let them build it. (or more likely they can, but why do that when you can get more $$$ from 3 800sqft apartments each at $1000/month. Until the high profit apartments are filled nobody will build the ones families would actually live in.
Or to put it a different way: it isn't 1880. People have always wanted more space, now with cars we can afford it in the suburbs.