The correct metric would be life expectancy, as it sidesteps the zero priors problem. Using that, the healthcare you are talking about looks a lot more like the diminishing returns you get on higher priced modern cars. Before anyone says anything about "quality of life", I'd recommend looking at the way assisted living operations are run. Anyway, we really started to lose steam after dentistry... dunno what the analog would be for cars, power steering?
> If the house you "need" to fulfill a specific lifestyle...
This is another thing I've been dealing with recently. I've delayed entry into the housing market way past what I'd have liked because the pricing makes no sense to me, and I've found that usually if something doesn't make sense to me - it is because it is misrepresented. After watching the market for a few years in two very different parts of the country I noticed something interesting: sub-million dollar homes were quickly getting more expensive, and multi-million dollar mansions were relatively static. I wonder how much of that has to do with home-loan accessibility, similar to the cost of educating students magically increasing in lock step with student loan program scope and availability.