If a home cost half million there are only a few people who could afford to keep up the payments on such a house. If a person who buys a house for say even 350,000. What happens if they loose their job? Do they have enough savings to cover the high payments every month until they're employed again? What happens if they don't get all the "raises" they expect over the next 10 to 20 years? Will they still like living from paycheck to paycheck and putting all their money in the house? What happens if the value of the house goes down and not up due to ability to pay by most of the population? Housing is not a good investment when it's high priced.
Paying 350,000. for housing for a person who lives from paycheck to paycheck is insane. All they need to do is loose their income and they loose everything. If a person pays 80,000 for a house then they most likely will survive on savings they have until they are employed again. Also, that half million dollar home may go down in value if the wages of people are still below the cost of housing. No one will be able to buy it at that price. This is happening now to people who paid over 500,000 for their home. They can't sell it. It's only going to get worse not better. Housing prices have not hit bottom yet.