I suppose its all relative to the demographic and to the lifestyle.
For example, here in NYC the average 1 bedroom condo is $ 1MM. Plan on having kids - add the cost of a 2 or 3 bedroom condo, private school (beginning with pre-school), a car (including insurance and parking), food, entertainment, MetroCard (to get to and from work), dry cleaning, etc.
Basically to live and work in NYC a married couple needs to make $250K just to get by. That's the price of living in a tiny condo in a so-so building. I'm sure the $250 buys an entirely different lifestyle in other areas.
A friend of mine bought a SICK condo in South Beach. Right on the water, boat slip, killer city and beach views, concierge, 3 bed, 4 baths, etc. - THE WORKS! He paid $750K. By contrast, that buys next to nothing here in NYC - it's basically your downpayment after borrowing from your 401(K), the bank, and eating tunafish everyday for 1 year.