Houses cost many times more than they did in 1980, but after adjusting for inflation and the increasing size of homes, the price has only increased 24.6% since 1980 (as of 2021). If there is a housing market correction of 20% or more, which I am sure there will be at some point, the inflation adjusted cost of housing may actually be on par with 1980 soon. As recently as 2016, the inflation adjusted price of houses per square foot was actually EQUAL to 1980.

Other than people wanting larger homes, the other factor is dual income households. In 1980, the second spouse provided only 26% of household income on average, but that has increased steadily over time.

In other words, if there were not so many dual income households, and if people did not want larger and larger homes, the inflation adjusted price of homes might actually be less than in 1980.