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Where we failed is that $120k was supposed to be a middle-class income when living costs this much. The fact the median is 63k is a sign that all the excess value has been sucked out of the masses and funneled into the coffers of the billionaire class.
The problem is you need to be a couple to have a house.
In the 80s and even 90s the mother of the house probably didn't work. I know mine didn't. Now they have to. The prices have gone up to match this "new normal" because there simply aren't enough houses. Or at least not enough houses in the places people want to live.
The free markets have settled on the idea that a house should cost two incomes. The government needs to step in to build affordable homes and get them into the right hands. No landlords scoffing them all up.