I bought my first house in 1986. It was a built in 1947, an outcome of the post WW2 housing shortage. An average handyman could have built most of this house.

It had 700 square feet on the main level. The basement was finished, which added another 400 square feet. The people I bought it from raised three kids in this house. The daughter was in the second upstairs bedroom (right next to the parents) and the two sons bunked together in the downstairs bedroom. One bathroom for the five of them.

In some ways, much of the current housing situation is our higher expectations. Our vision of a starter home has expanded, which means higher mortgage.

My former house is more likely to be on the rental market for people who are not ready to buy. People who want a starter home still want more features.

BTW, there is no point in buying a house if one cannot see staying there for at least five years. If people cannot see that stability, they should not buy. People with an income to afford my former house probably do not have that stability.