It wouldn't be that expensive if the practice of mortgage wasn't so rampant. It's worth what people are willing to pay for it. And like i said, if people lived with their family longer,even after marriage and houses were passed along generations more, there would even less demand driving down the cost. Not too many decades ago, all you had to do is save up a few years (US) to buy a house, am I wrong? It costs an arm and a leg now because the default way is debt and people will take on a million dollars of debt with $30k/yr income if someone gives them the loan. So the driver of housing prices is not people's income but bank's willingness to loan -- that's why it costs decades ,one spectacular example of why debt is not "ok".