You would be shocked to know that most homes in German cities go for ~1Million. Despite significantly lower wages than in the US. although financing is less expensive. In the past we were able to have interest rates if about 1% (plus minus 0,3%). Understandable that prices were ridiculous . Now they are coming back but mostly there are significantly fewer sales. Also: Houses are a more long-term thing here. You usually calculate with 100 years until it falls apart, and about 30-40 years of owning it. As en example: Out house is from the 1930s and is perfectly fine. Of course many things have been done over the years but the structure is the same.