You pegged it; people think the $200 sneaker life is what they need and should strife for. My son was able to buy a foreclosure home for $52,000? in Binghamton, NY area. He had to do some minor work on it, most notably the gas furnace, but fortunately, he knew someone who knew how to work on such things, so he only had to pay for some new fittings and such. It's a 2BR one bath place in one of the old "factory neighborhoods". He is a little unusual because he worked after college and lived like a pauper while saving money. He worked less than three years and then was offered a layoff package (same time he wanted to leave) and was able to pay cash for the house. He now has a first child and his wife doesn't work outside the house (plenty of work when you have a child at home :) ). He is working as a classroom aide in the public school system, so he isn't even making a real income, but is doing it for the health insurance coverage. I am trying to get him to start a "real" job (he has a degree in engineering!) so he can be financially stable (I don't see the minimal amount he is making now to be a long-term financial situation). Of course, having no mortgage is a big part of it, but others could do the same thing with a job that pays middle-class wages. If someone lives in an area with outrageous home prices, then they should consider a move to an affordable area. Even with a lower salary, the lower home prices in many areas would offset the lower income.