The way it seems to work in the Anglosphere is that house prices are mainly limited by the cost of money. When interest rates are low, long mortgages for enormous sums are affordable so people bid up the cost of desireable places to live. But it's a zero-sum game - increased property prices don't create more land in the desireable area, and due to planning laws and nimbyism they usually don't increase density much either. Everybody works harder and pays more for approximately the same distribution of physical assets - except for the windfall for people who got in early, who turn into a political support base for parties that then need to keep house prices propped up. And the cycle needs to continue, otherwise those mortgages would have negative equity.
People in the US aren't paying outrageous rent for tiny spaces because they think it's a great way to live.
All of that is obviously bollocks, sort of.
As another ahem European, I'm more interested in a German's views on home ownership and why I'm commenting here.
You said: "That's why we haven't bought and I don't want to." implying it is all about tax. I'd be intrigued to explore this farther. You mentioned earlier "The taxes alone for "owning property" i.e. renting it from the government until you die are extremely high" - could you clarify that.
https://www.redfin.com/NH/Amherst/47-Merrimack-Rd-03031/home...
For sale for: $284,900
Assessed at: $269,500
Taxes (2016) $6,764
(New Hampshire has no sales tax, and high property taxes, quite high in some towns...)
I can't speak for the USA but in Germany - specifically where we live, home ownership is not/barely worth it financially speaking. The taxes alone for "owning property" i.e. renting it from the government until you die are extremely high. You pay 6.5% (varies by state) of the property value in "Grunderwerbsteuer" when you initially buy and then for a home valued at around 250k (fairly normal prices) you're looking at a 2-4k per year in taxes. Throw on top of that all your upkeep costs in time and money and it really doesn't look like such a nice deal.
That's why we haven't bought and I don't want to. Nowadays, "home ownership" is just another name for renting where the costs are slightly less and the upkeep to you in time and effort is more.