While that's the average home price, most people I know have just lowered their standards or to continued to rent. I know people who purchased home a few years ago just to be to stressed out over (even with pay raises) inflation has outpaced them and their planning to get out of a home and pick up an apartment for a little while at least. 

Some of these people have been deferring having children for housing/financial reasons. I'm not sure this is abnormal for people in their mid-late 20s. I don't know anyone that has the ability to put more than about 30k down at best, most are under 20k.