<i>One answer is that the market forces tend to funnel all increases in income to landowners as rent.</i><p>This is partially a result of Americans choosing to consume more housing than citizens of peer nations or, indeed, Americans historically.  The size of the average owned American home doubled since 1950.  You can save a <i>substantial</i> amount of money if you&#x27;re willing to live like a 2015 Japanese salaryman or a 1950 American middle class family, but the modal American considers that standard of living &quot;poverty&quot; and is unwilling to accept it.<p>Another layer is that big houses gate access to good school districts, which is a very, very deep can of worms.