It is always advisable to have furniture based on the size of the house and the number of people living in the house. When I was doing my PhD, we used to stay 6 members of my family in Vizag in a single room only. But my aunt and my sisters used to arrange the articles very neatly and the room used to appear very nice and clean. Later on, we have shifted to a little bigger house.
As a matter of fact, if the family members have the interest to maintain the house neat and clean they can maintain the same neatly.
I have experience in this regard. Our present home is relatively has a small area. However many of our furniture are in 'knocked down/ foldable pattern. These furniture we had bought when we were in Mumbai where we had a still smaller space home. So we could keep large furniture in our present home rooms. Visitors initially curve their foreheads on a preliminary view of our home and have a lesser impression due t its small area. But when we demonstrate how we use the various furniture they feel amused. Then we tell them how it is advantageous to us as we have all normal facilities , but lesser area and more ease to dust and broom our rooms.
Then, we go on experimenting on re-arrangement and have ultimately arrived at a most convenient space arrangement now.
As the thread authors has opined, removal of clutter saves a lot of space. But I admit, I do not score full marks in this regard.
Rearranging will also give a new look and more knowledge about space savings but main thing is to keep the tempo of the order in the room to be maintained for a long time.
Knowledge is power.