Because a household must have two incomes now to afford a home. This comes at the expense of what is best for the family, especially the children. I think you're agreeing. Home prices are out of control.
It's also almost certainly the case that dramatically lowered costs in other areas (food, telecommunications, household appliances) has freed up spending power which, again, has bid up prices in desirable markets.
Cheaper credit has greatly magnified the same effect, without necessarily driving up true costs.
As you've pointed out, housing isn't particularly expensive everywhere, just places where they're not building to keep up with rising demand.
Oh, and we haven't even mentioned that comparing the median home in 1970 to the median home in 2019 is not exactly apples-to-apples, starting with square footage.
Maybe you have something wrong. Maybe it wasn't more rewarding to go to work. People on their death beds don't say I wish I'd gone to work more. No. They say they wish they'd spent more time with family.