Another part to consider is how house sizes have gone up by a fair margin over the past 50 - 70 years. If you look at old bungalows built after the war they are 1000 - 1500 sqft homes, modern builds (around me at least) are all 2500+ sqft. So part of why homes are more expensive is that we're building more home on each lot (just speaking on fully detached homes here).

A "starter home" isn't really a thing anymore.