A lot of people spend more on housing because standards have greatly increased. The average square footage of living space per person has doubled since the 1970s and tripled since the 1950s. A modest home in 2020s was a luxury house in the 50s. Families have gotten smaller and houses have ballooned.

Even when I was a kid in the 1980s I didn't know a single person whose household had multiple bathrooms, a dishwasher, or air conditioning. Not a single one.

Part of the reason why standards have increased is because incomes have increased.