was merely a cottage
The Dashwood women are reduced to living on £500 a year. This is a drastic change from Norland Park, which is assumed to be a substantially larger living. This would carry the Dashwood women from the gentry to the upper middle-class. A cottage is a realistic option for their new economic status, but is definitely a degradation from their former life.
http://web.stanford.edu/~steener/su02/english132/conversions.htm