http://www.globalpropertyguide.com/most-expensive-cities

You will find that European cities are very expensive to buy in and equally bad to rent in. Paris, Geneva, London, Helsinki, Stockholm, etc... all suffer from the exact same issues we're now seeing in American cities.

You could argue that the make-up of those cities are superior, as their suburbs are much more compact and urban connected with much better public transportation. This coupled with a culture that is much more ok with living in small spaces helps the middle class immensely.

In terms of a priced out middle class, however, the United States is really just catching up to the rest of the world.

Or of course you go to rust belt equivalent communities. Northern Spain. Southern Italy. Very cheap, beautiful even, housing for no money whatsoever. And not a chance in hell of finding a job there.