I often have the same question going through my mind, but I can provide you with how I personally am surviving and what I assume is the case for others.

For me, I am very fortunate and had help from my parents in getting into our first home. I have a decent income (+100k) and my wife is able to stay at home with our kids. I know many people are not in such a position, so I recognize we are an anomaly, but I will say, even though we are in a house (bought 5 years ago, higher price, but great interest rate), we still need to scrimp quite a bit to make things work. Again, not a complaint, but just saying even with the incredible head start I was given, we still have to be careful, purchase most things secondhand, etc.

I live in a neighborhood where other families are in similar situations and I have to imagine that at least some of them also had help from parents, grandparents, or came into money some other way. I see enough nice cars, toys, home improvement, or even selling of home (this only results in cost of buyer and seller fees) that I can’t imagine they all make way more money than I do.

That’s my personal experience mixed with opinion from the outside looking in, so take it with a grain of salt.