I think a common mistake (and one you’re doing here) is implying those things are fixed measurements. The common definition of a “small, entry-level” house has

I think a common mistake (and one you’re doing here) is implying those things are fixed measurements. The common definition of a “small, entry-level” house has dramatically inflated over the last 70 years. When people compare to their parents generation, it’s not at all apples to apples — those houses were about half the size and much, much shittier and cheaper. Similarly, college has become a thing that went from <40% of high school graduates prior to the 1950s, to 80-90%+ today. The demand has increased enormously, so of course prices has gone up. Isn’t the point of markets to provide feedback and change behaviors? Live in a smaller house, go into trades instead of college, etc. (like many in the last generations did, in reality). Instead, everyone is trying funnel into the patterns that had the most success in the past, leading those to become oversubscribed and not working as well.