Here - which is a small town in Germany - for $2000 (1800 Euro) you get a 5 bedroom villa with a large garden. Something like you have shown may cost about 250 Euro, but is hard to find. Many single people look for cheap places to rent.
Most average incomes here are below 1800 Euro, so a rent of that amount is outside the realistic budget for most people.
In the major cities, like Berlin, Munich ect. this looks entirely different, though. Which is a huge problem for many people there.
RE: The smallest NYC apartment I have ever seen.