That's what I think is driving it too.
You couldn't buy a house for a family in our county for $150,000, a 2/1 in a decent neighborhood will run around $180,000. 3/2's start around $225,000 and that's probably a fixer upper 3/2.
I feel sorry for young people trying to get into the home market today because even though rates are low, house prices, plus the cost of property tax and insurance, seem almost unaffordable to someone with a middle class $50,000-70,000 income.
My son is 17, hopefully, things will cool down by the time he's ready to buy a home.
I know the feeling. I can't see the value in a 2/1 for 180 large. I won't do it I don't care. I'll live in my apartment for years before I pay 180 grand for a 2/1 on a postage stamp of a lawn.
It depends on what area of the country and what you consider a "decent neighborhood". I could find quite a few houses for less than those amounts in small towns all over the country. But those small towns aren't going to have big money jobs that the big towns have. You can also find very affordable properties in good neighborhoods in many of the rust belt cities. Again, the good paying jobs there are harder to find than the good houses.
I just started the process of relocating to the New York City area. To find a comparable house to what I currently have will cost me at least twice what my current house is worth on the market (under $225,000 for a 3/2 in a good semi-rural suburban neighborhood). As they say: location, location, location.
I think home prices are still pretty low where I live (southern Indiana, Louisville Kentucky area). You can get a 3/1 house in a decent neighborhood for less than $150,000 no problem. But if you need/want to live on the coasts, this isn't any help.