That is an inflation adjusted number

But the cost of housing has inflated more than the cost of potatoes.

Exactly. If incomes increased at the same rate as housing did, then people would be much richer today than they were back then. It's why inflation uses a basket rather than just cherry picking a single component of the basket. If you want things to look bad you use housing. If you want things to look good you use potatoes. If you try and be fair you use a basket.

Im sorry but a basket is absolutely useless when we’re talking about basic needs like housing.

2/3 basic needs (food & clothing) are a lot cheaper than they were 50 years ago, and 1/3 is more expensive.

That 1/3rd is often the difference between life and death.