How do people manage to fit in places in EUROPE?

I am Mexican, whether because we live close to Texas or because most cars around here are American in design but most roads, houses and cars have a pretty decent size (taking in account that most people are not as tall as people in Europe) So I was amazed to see the size of cars/houses/roads in most of Europe! is there an historical or demographic reason for things being so damned small over there? I mean huge Russian dudes driving tiny Lada's and Citroen's and all those tiny cars! ha ha. We got a few Renault's over here but I feel uncomfortable in them.